By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 7 (CNS Canada) – ICE Futures Canada canola contracts were weaker Thursday morning, taking some direction from the early losses in the Chicago Board of Trade soy complex.
Wednesday’s larger-than-expected canola production estimate also continued to weigh on values, as market participants adjust their balance sheets to account for a record 21.3 million tonne canola crop. That compares with last year’s 19.6 million tonne production.
Speculative selling contributed to the declines, as the nearby technicals turn bearish. However, support was holding around the C$505 per tonne level in the January contract.
Weakness in the Canadian dollar also helped temper the declines, as the softening currency makes exports more attractive to international buyers and boosts crush margins.
About 3,500 canola contracts had traded as of 9:02 CST.
