By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, May 3 (CNS Canada) – ICE Canada canola contracts were lower Wednesday morning, as declines in outside vegetable oil markets put some pressure on values and traders took back some of yesterday’s gains.
Chicago Board of Trade soyoil futures were lower in early activity, while Malaysian palm oil was also down in overnight trade.
Improving weather conditions in Western Canada added to the softer tone, as the drier weather allows farmers to get back on their fields.
However, tightening old crop supplies, coupled with solid end user demand, remained supportive, according to participants.
Weakness in the Canadian dollar, which has fallen to its weakest level in 14 months relative to its US counterpart, also helped underpin canola. The softer currency makes exports more attractive to international buyers and underpins crush margins.
About 2,400 canola contracts had traded as of 8:52 CDT.
Milling wheat, durum, and barley futures were all untraded.
