By Dwayne Klassen, Commodity News Service Canada
June 13, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:16 CDT Thursday morning. Much of the early selling in canola was inspired by the downtrend displayed by CBOT soybean and soyoil futures, market watchers said.
Losses overnight in Malaysian palm oil and European rapeseed futures contributed to the bearish sentiment in the commodity.
The arrival of beneficial weather across much of the Canadian prairies also stimulated some of the price weakness in canola, with the weather conducive to the development of the recently planted fields, brokers said.
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Early strength in the value of the Canadian dollar helped to undermine values as did steady farmer deliveries of canola to the cash pipeline. Farmers were said to be unloading old crop supplies now that they were certain of harvesting new crop stocks, brokers said.
Speculative and commodity fund liquidation orders associated with global economic concerns also prompted some of the downward price action, traders said.
Underlying support in canola came from scale-down domestic crusher demand and exporter pricing of old export business.
As of 10:16 CDT, about 10,354 canola contracts had traded. Of the contracts traded, 5,042 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:16 CDT:
