By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 7 – ICE Canada canola contracts were down about one percent Thursday morning, as losses in most outside financial and commodity markets spilled over to weigh on prices.
Renewed Chinese economic concerns sparked a selloff in the equity and energy markets, which spilled into the agricultural commodities as well. CBOT soyoil, Malaysian palm oil, and European rapeseed futures were all down in overnight activity, which contributed to the selling pressure in canola.
China’s government allowed the currency, the yuan, to depreciate sharply, making it more expensive for the Asian giant to import grain and oilseeds.
Bearish technical signals weighed on canola values as well, although the most active March contract was still holding above the psychological C$480 per tonne level.
Solid exporter and domestic crusher demand also helped temper the declines, with the general weakness in the Canadian dollar helping prop up crush margins.
About 5,000 canola contracts had traded as of 8:49 CST.
Milling wheat, durum, and barley futures were all untraded.
