By Dwayne Klassen, Commodity News Service Canada
February 26, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:52 CST Tuesday morning with the declines in the outside oilseed markets behind some of the price weakness, industry watchers said.
A drop off in demand from the commercial sector also contributed to the downward price slide in canola.
Losses overnight in Malaysian palm oil and European rapeseed futures added to the bearish price sentiment as did the sell-off experienced by CBOT soyoil futures, brokers said.
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Commodity funds were noted sellers of canola early in the session with small speculative account holders also seen liquidating long positions in canola.
Sentiment that canola was overpriced and in need of a correction to the downside, further weighed on values, brokers said.
A pick up in elevator company hedge selling, spurred in part by increased sales of old crop canola by farmers, added to the price weakness, traders said.
The downside push in canola futures was tempered in part by the soft Canadian dollar.
Spreading was a small feature of the activity in canola but still helped to augment the volume total.
As of 10:52 CST, about 8,922 canola contracts had traded. Of those contracts, spreading accounted for 7,560 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:52 CST:
