By Terryn Shiells, Commodity News Service Canada
Winnipeg, Feb. 12 – Canola contracts on the ICE Futures Canada platform were sharply lower Wednesday morning amid follow-through selling after the market dropped to fresh contract lows yesterday, analysts said.
Spillover pressure from the declines seen in Chicago soybeans was also responsible for some of the price softness.
Further downward pressure came from the stronger Canadian dollar and reports of large Australian canola crop production this year.
The large Canadian crop and ongoing logistics issues within Western Canada continued to overhang prices.
However, spillover support from the strength seen in Malaysian palm oil, European rapeseed and Chicago soyoil futures limited the declines.
Oversold price sentiment and continued ideas that canola is undervalued compared to other oilseeds were also supportive.
As of 8:36 CST Wednesday, about 7,320 contracts had traded.
Milling wheat, durum and barley futures were untraded following price revisions to wheat after the close on Tuesday.
Prices in Canadian dollars per metric ton at 8:36 CST:
