By Terryn Shiells, Commodity News Service Canada
Winnipeg, Jan. 21 – ICE Futures Canada canola contracts were weaker following the sharp declines in Chicago soybean futures on Tuesday, analysts said.
Good weather for Brazilian soybeans and forecasts calling for improved conditions in Argentina were behind the sharp losses seen in soybeans.
Canola futures were also undermined by logistics problems within Canada’s grain handling system and expectations of large carryout stocks.
However, the downswing in the value of the Canadian dollar helped to limit the declines, as it made canola more attractive to crushers and exporters.
Spillover support also came from the advances seen in Chicago soyoil, Malaysian palm oil and European rapeseed futures.
About 25,957 canola contracts were traded on Tuesday, which compares with Monday when 9,923 contracts changed hands.
Durum and barley prices were untraded and unchanged. Milling wheat prices were also untraded, but the Exchange moved prices lower after the close.
Settlement prices are in Canadian dollars per metric ton.
