By Phil Franz-Warkentin, Commodity News Service Canada
March 20, 2014
Winnipeg – ICE Canada canola contracts were slightly weaker Thursday morning, as the speculative buying that supported prices recently was said to be absent and the market saw a modest correction.
Farmer hedges on the other side also weighed on canola, according to traders. The burdensome supply situation in Western Canada remains a bearish influence overhanging the market as well.
Gains in CBOT soybeans did provide some underlying support for canola, but soyoil was lower. Malaysian palm oil was also down in overnight trade.
The Canadian dollar was weaker once again on Thursday, moving below 89 US cents. The softer currency helped temper the declines in canola, making the oilseed more attractive to exporters and domestic crushers.
About 5,500 canola contracts had traded as of 8:49 CDT.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:49 CDT:
