By Jade Markus, Commodity News Service Canada
WINNIPEG, January 4 – ICE Canada canola contracts were weaker at midday Monday, following weakness in Chicago Board of Trade soyoil, and the Chinese stock market.
Chinese stocks fell seven per cent in early activity on Monday, which in turn pressured some CBOT contracts and Canadian canola, as fears about reduced demand hit the market.
“Outside pressures from other markets are certainly leaning on canola,” one Winnipeg-based trader said. “Even the crude market here has turned down which isn’t good news for us.”
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Spread activity was lackluster on Monday as many traders had exited the January contract, though there were light deliveries against that contract, the trader said.
Outright volume in the March contract is starting to pick up, especially as US markets move lower, he added.
However, a weaker Canadian dollar limited losses in back months.
“Crush margins, they’re not screaming higher here which you’d think they would be with the Canadian dollar down this much, but that’s where we’re finding our support,” the trader said.
Malaysian palm oil closed lower.
About 10,790 canola contracts had traded as of 11:05 CST.
Milling wheat, durum, and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 11:05 CST:
