By Dave Sims, Commodity News Service Canada
WINNIPEG, December 29 – Canola contracts on the ICE Futures Canada platform were weaker at 10:45 CST on Thursday, in sympathy with the US soy complex.
Speculators were covering short contracts, according to a trader in Winnipeg.
The Canadian dollar was stronger relative to its US counterpart, which made canola less attractive to foreign buyers.
Conditions in South America have been favourable for the development of soybeans, which was bearish.
Malaysian palm oil and European rapeseed futures were also lower, which added to the downside.
However, canola is still considered a bargain, relative to other oilseeds, according to the trader.
“Canola is on the cheap side so it’s coming down reluctantly,” he noted.
Light farmer selling and steady commercial activity helped support values.
About 11,500 canola contracts had traded as of 10:45 CST.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:45 CST:
