By Dave Sims, Commodity News Service Canada
WINNIPEG, March 27 – Canola contracts on the ICE Futures Canada platform were lower at 10:45 CDT Friday, pushed lower due to spillover pressure from the US soy complex.
One analyst noted the May contract seemed to be feeling the brunt of the selling action.
“Old crop canola has been quite weak, (there’s) some spec longs rolling into November. As they’ve been liquidating over the past week they’ve pressed the old crop pretty hard,” he said.
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Malaysian palm oil and European rapeseed futures were slightly lower which added to the bearish tone.
However, a temporary drop below the psychologically important US$450 per tonne level (May contact) could inspire fresh bargain-hunting from Chinese buyers, suggested an analyst.
The Canadian dollar was weaker against its American counterpart which gave canola some support as the lower dollar made canola more attractive to international buyers.
Commercial demand remains solid and there are continued concerns about a lack of soil moisture in Western Canada.
Around 11,500 contracts had traded as of 10:45 CDT, Friday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
