By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 5 (CNS Canada) – ICE Canada canola contracts were lower Thursday morning, although activity was thin and choppy.
Losses in Chicago Board of Trade soybeans contributed to the early selling pressure in canola, according to traders. Malaysian palm oil and European rapeseed futures were also weaker.
Continued strength in the Canadian dollar, after it rallied back above 75 US cents on Wednesday, was also bearish for canola as the firmer currency cuts into export demand.
However, canola does still remain attractively priced compared to other oilseeds, keeping some buying interest in the market.
Chart support was also holding to the downside, with the March contract trading above the psychological C$500 per tonne mark.
About 4,600 canola contracts had traded as of 8:52 CST.
Milling wheat, durum, and barley futures were all untraded.
