By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 24 (CNS Canada) – ICE Futures Canada canola contracts were posting small losses Tuesday morning amid ideas that the market was looking expensive compared to other oilseeds.
Warming temperatures across Western Canada contributed to the declines, as the better weather helped ease concerns over a late start to spring seeding. Statistics Canada releases its first acreage estimates of the year on April 27, and average trade guesses are predicting a record large planted canola area.
A slightly firmer tone in the Canadian dollar, following Monday’s sharp declines, also weighed on canola.
However, advances in Chicago Board of Trade soybeans provided some underlying support. Traders covering short positions ahead of the end of the month also helped temper the declines.
About 6,500 canola contracts had traded as of 9:00 CDT.
