By Dave Sims, Commodity News Service Canada
WINNIPEG, July 29 – ICE Canada canola contracts were slightly lower Wednesday morning, trying to give back the modest gains reaped yesterday following Monday’s market plunge.
Losses in US soyoil, Malaysian palm oil and European rapeseed futures contributed to the declines.
The market’s reluctance to follow through on yesterday’s bounce leaves the technical bias pointed down, said an analyst.
The recent plunge of the Chinese stock market and overall economic uncertainty of the Asian country is bearish for vegetable oil demand moving forward, a trader noted.
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Rain in Saskatchewan was expected to help the drought-stressed canola crop, according to a report.
However, the Canadian dollar was lower relative to its US counterpart which made canola more attractive on the international market.
Continued rain in southern Manitoba was not wanted by farmers who were already dealing with excess moisture.
The near-term contracts seem to have found chart support at the C$490 per tonne level.
About 1,300 canola contracts had traded as of 8:35 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:35 CDT:
