By Terryn Shiells, Commodity News Service Canada
Winnipeg, Jan. 31 – Canola contracts on the ICE Futures Canada platform were slightly lower Friday morning, following the declines seen in the Chicago soy complex and European rapeseed futures, analysts said.
Large soybean crop prospects in South America and worries about China cancelling previously made US soybean orders were bearish for the oilseed markets.
Canola was also undermined by continued logistics problems in Western Canada, slow usage of the crop and large expected carryover stocks.
However, the sharp downswing in the value of the Canadian dollar, which was trading well below 90 cents US Friday morning, was supportive. The weaker currency made canola more attractive to crushers and exporters.
Sentiment that the market is oversold and that canola is undervalued compared to other oilseeds kept a firm floor under prices.
As of 8:38 CST Friday, about 2,810 contracts had traded.
Milling wheat, durum and barley futures were untraded following price revisions to wheat after the close on Thursday.
Prices in Canadian dollars per metric ton at 8:38 CST:
