By Dave Sims, Commodity News Service Canada
WINNIPEG, December 20 – Canola contracts on the ICE Futures Canada platform were lower at 10:35 CST on Tuesday, weighed down by losses in the Chicago Board of Trade soy complex.
Declines in Malaysian palm oil and European rapeseed futures added to the downside.
The Canadian dollar was higher relative to its US counterpart, which made canola less desirable on the international market.
“We haven’t seen any technical selling yet but if this weakness continues we could see funds going from simply rolling their positions forward to taking some positions off,” said a trader in Winnipeg.
However, concerns about dry conditions in Argentina helped limit the losses.
Canola is still considered relatively cheap relative to other oilseeds.
Crush margins were down about six dollars early in the day, according to the trader.
About 16,000 canola contracts had traded as of 10:37 CST.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:37 CST.
