By Dave Sims, Commodity News Service Canada
WINNIPEG, December 13 – Canola contracts on the ICE Futures Canada platform were lower on Wednesday, weighed down by losses in vegetable oil.
Strength in the Canadian dollar, relative to its U.S. counterpart, was bearish for canola as it made the commodity less attractive to international buyers.
Canola continues to be pressured by yesterday’s USDA supply and demand report, which raised estimates for U.S. soy ending stocks.
The front-month January contract has drifted below the major psychological support level of C$500 per tonne.
However, gains in U.S. soybeans limited the losses.
There are expectations that U.S. interest rates could be hiked today. If that happens the Canadian dollar may move lower, which would be supportive for canola.
Prices in Canadian dollars per metric ton at 8:59 CST:
