By Jade Markus, Commodity News Service Canada
WINNIPEG, March 7 – ICE Canada canola contracts were weaker on Tuesday, pressured by sharp losses in outside markets and upcoming US data.
“Well we’re getting beat down here, royally. Carpet pulled out from underneath us,” said one Winnipeg-based trader.
The US soy complex declined on Tuesday, pressured by the expectation for a bearish number from the United States Department of Agriculture (USDA) later in the week. That pressure spilled over to canola.
The USDA will be releasing its World Agricultural Supply and Demand Estimates report on Thursday, and many traders expect a bearish Brazilian soybean production number.
Read Also
Canadian Financial Close: Loonie, crude oil advance
The Canadian dollar reached its highest close in nine days on Wednesday, aided by higher crude oil prices. The loonie…
While canola was down sharply by midday on Tuesday, the trader expects that the market may have hit the lows of the day and could see upward momentum through the session.
“Little bit of a bounce expected here off the lows because we kind of whipped down pretty quickly,” he said.
“Not that we’re going to go positive or anything.”
About 12,289 contracts had traded as of 10:43 a.m. CST.
Milling wheat, durum and barley futures were all untraded and unchanged.