By Dave Sims, Commodity News Service Canada
WINNIPEG, August 5 – Canola contracts on the ICE Futures Canada platform were lower at 10:45 CDT Wednesday in light-volume trade, as pressure from currency issues sparked some speculative selling, according to a trader.
The Canadian dollar was higher relative to its US counterpart which made canola less attractive to out-of-country buyers and domestic crushers.
“We’re back under the 50-day moving average, the pop from the Canadian dollar may have brought some early selling in,” said the trader.
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Losses in CBOT soyoil and Malaysian palm oil contributed to the declines in canola values.
Improvements in the Canadian canola crop were also weighing on values, according to the trader.
“The crop seems to be advancing much better,” he said crediting recent rains with the turnaround.
Farmer selling is expected to increase going forward, according to a report.
However, gains in US soybean and European rapeseed futures helped limit the losses.
Traders are positioning themselves ahead of the release of next week’s USDA World Agricultural Supply and Demand Estimates Report (WASDE) due out on August 12.
There are still deep concerns about the lateness of the crop, said the trader.
Around 5,800 contracts had traded as of 10:45 CDT, Wednesday.
Milling wheat, barley and durum were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
