By Jade Markus, Commodity News Service Canada
WINNIPEG, February 25 – ICE Canada canola contracts were lower on Thursday as a stronger Canadian dollar and losses in Chicago Board of Trade soybeans and soy oil pressured the market.
However, strong demand for canola limited some losses on Thursday, said one Winnipeg-based trader.
“I guess it’s the great demand, and you do see that in the crush margins,” the trader said.
Chicago Board of Trade soybeans and soy oil were pressured by weaker export data from the United States Department of Agriculture on Thursday, which caused spill-over pressure in canola.
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Gains in the Canadian dollar against its US counterpart also had a bearish effect on canola, which could continue long-term, as analysts say the loonie may have reached its bottom.
“That’s taking a fair bit off, so currently we have canola lower,” the trader said. “It’s pretty hard to see anything in this market, other than we’re going to grind away here.”
But he added that if news stays limited traders could take canola higher before market close.
Malaysian palm oil closed higher.
Barley futures were down with investor profit-taking on Thursday.
Analysts say barley is facing a weak physical market.
About 11,247 contracts had traded as of 10:48 CST.
Milling wheat and durum futures were untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 10:48 CST:
