By Dave Sims, Commodity News Service Canada
WINNIPEG, April 7 – ICE Canada canola contracts were lower Tuesday morning in sympathy with the US soy complex and some follow-through selling.
Malaysian palm oil and European rapeseed futures were also weaker which pressured values.
The most-active May contract is trading below its 20-day and 50-day moving averages, according to an analyst.
The large soybean harvest in Brazil and Argentina added to the bearish tone.
However, the Canadian dollar was weaker against its US counterpart which made canola more attractive to domestic crushers and exporters.
Reports that European and Chinese rapeseed production could be lower this year underpinned the futures, an analyst said.
Reports of dry conditions throughout Western Canada put a weather premium into the market, according to participants.
About 2,400 canola contracts had traded as of 8:40 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:40 CDT:
