By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 25 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures continued to fall back on Wednesday morning, moving further from its former support level of C$800 per tonne.
There are concerns that the large Australian canola crop will cut into Canada’s share of the export market.
Also, declines in the Chicago soy complex and European rapeseed contributed to the weakness in canola. Additional pressure came from sharp losses in Malaysian palm oil, which resumed trading after being closed to mark the Lunar New Year.
Meanwhile, spillover from small upticks in global crude oil prices helped to temper further decreases in vegetable oils.
Widening crush margins continued to underpin canola values.
The Canadian dollar was relatively steady on Wednesday morning, with the loonie at 74.83 U.S. cents compared to Tuesday’s close of 74.79.
About 6,750 contracts had traded as of 8:34 CST.
Prices in Canadian dollars per metric tonne at 8:34 CST:
Price Change Canola Mar 791.20 dn 5.50 May 790.30 dn 5.90 Jul 791.00 dn 6.60 Nov 775.80 dn 6.80
