By Jade Markus, Commodity News Service Canada
WINNIPEG, August 16 – ICE Canada canola contracts were weaker at midday on Tuesday, but were able to recover from earlier losses.
Concerns about reduced demand from China amid an upcoming dockage rule change, and steady advances in the Canadian dollar pressured the market on Tuesday.
As of September 1, China’s quarantine authority is expected to allow just one per cent dockage, which could dramatically reduce the amount of Canadian canola the country buys.
The loonie gained against its US counterpart on Tuesday, moving above 78 US cents for the first time in close to two months.
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However, the market was able to recover from earlier losses by midday.
“I thought we were going to have a turnaround Tuesday and go down, but now we’ve had a turnaround Tuesday and gone back up,” said one Winnipeg-based trader.
Advances in Chicago Board of Trade soybeans were one source of support, and rain in Western Canada kept a weather premium in the market.
“These little rains that we had last night don’t help the situation at this point. The harvest weather isn’t great,” the trader said.
About 11,677 contracts had traded as of 10:47 CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
