By Jade Markus, Commodity News Service Canada
WINNIPEG, February 14 – ICE Canada canola contracts were weaker at midday on Tuesday, as losses in the US soy complex dragged prices lower.
Chicago Board of Trade soybeans, soymeal and soyoil declined on Tuesday, which put spill-over pressure on canola.
“South American weather is looking like it’s improving again—more favourable to crop development,” said one Winnipeg-based trader.
He added that the canola market looks heavy, amid a lack of crusher-buying.
“Considering the lousy move we’ve seen in the crush rate here,” he said.
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Crush margins are about C$89.68 a tonne in the May contract as of February 13, ICE Futures Canada data shows, which compares with the previous month when that figure was at C$ 127.45.
Commodity funds have a small net-long position, the trader said, but with recent selling pressure they are staying out of the market.
Farmer-selling following recent warm temperatures in Western Canada added to the downside.
About 16,166 canola contracts had traded as of 10:49 a.m. CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:49 a.m. CST:
