By Dave Sims, Commodity News Service Canada
WINNIPEG, March 24 – Canola contracts on the ICE Futures Canada platform were lower at 10:45 CDT on Friday, weighed down by losses in the US soy complex. The market had been higher in early activity but was unable to hold up against the downward pull of the beans.
Losses in Malaysian palm oil and European rapeseed futures added to the bearish tone.
“I also think it’s just a case that you get somebody on the short side of the market, liquidating longs and collapsing spreads,” said a trader in Winnipeg.
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Large global supplies of soybeans were dragging on prices.
North American oilseed acreage is expected to increase this spring, which was bearish.
Talk of cancelled canola orders was a background feature, according to the trader.
However, weakness in the Canadian dollar was supportive, as it made canola more attractive to out-of-country buyers.
There are ideas the crop is oversold and a bounce-back is looming.
Canola stocks continue to tighten in Western Canada, which underpinned prices.
About 20,000 canola contracts had traded as of 10:45 CDT.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:45 CDT:
