By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, December 20 – THE ICE Futures Canada canola market suffered losses on Tuesday, as weakness in the US soy complex weighed down the market.
Traders have begun to roll out of the January contract into the March contract, noted a trader in Winnipeg.
“We haven’t seen any technical selling yet but if this weakness continues we could see funds going from rolling their positions forward to taking some positions off,” he said.
Strength in the Canadian dollar and losses in vegetable oil also dragged on prices.
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However, canola took some support from higher prices for crude oil.
Export demand has been solid in recent days and canola is cheap relative to other oilseeds.
Milling wheat, barley and durum were untraded.
About 53,104 canola contracts traded on Tuesday which compares with Monday when 44,648 contracts changed hands. Spreading accounted for about 41,880 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed 13 to 16 cents per bushel lower on Tuesday, as rain in Argentina continued to pressure the market.
Prices had been supported by dry conditions in the competing South American country, but recent showers are favourable for production and are bearish.
A stronger US dollar added to the downside, as it makes the country’s commodities less appealing to international buyers.
The US dollar touched a 14-year-high in early activity on Tuesday.
Commercial selling was also a feature, market watchers say.
SOYOIL prices declined on Tuesday, tracking losses in Malaysian palm oil.
SOYMEAL closed weaker on Tuesday.
CORN futures declined two to three cents per bushel on Tuesday, feeling spillover pressure from the soybean market.
Speculative selling added to the downside.
Analysts say corn is stuck in a narrow trading range.
WHEAT closed unchanged to two cents per bushel weaker on Tuesday, pressured by general strength in the US dollar.
Spillover weakness from the soybean and corn markets was also bearish.
