By Terryn Shiells, Commodity News Service Canada
Canola contracts on the ICE Futures Canada platform were sharply lower at 10:45 CDT Monday, undermined by speculative selling as they continued to add to their large short position, analysts said.
Spillover pressure from the losses seen in Chicago soybean and soyoil futures added to the bearish tone.
Expectations of a large 2014/15 US soybean crop, as growing conditions are very good in the US, further undermined prices, as did forecasts calling for improving weather in Western Canada.
Activity was on the quieter side, which helped to exaggerate the downward price move, traders said.
However, ongoing concerns about recent flooding and dryness lowering yield potential for some western Canadian crops helped to temper the losses.
Slow farmer selling, as they wait for better prices and indication of how much their new crop will yield, was also supportive.
As of 10:45 CDT Monday, about 13,000 contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
