By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 21 (CNS Canada) – ICE Futures Canada canola contracts were weaker Thursday morning, as declines in Chicago Board of Trade soyoil weighed on values.
A stronger tone in the Canadian dollar put additional pressure on canola, as the currency reacted to solid inflation and retail sales data. The rising currency cuts into crush margins and makes exports less attractive to global buyers.
Forecasts calling for improving moisture conditions in some South American soybean growing regions were also bearish for the oilseed markets in general.
However, chart support was holding to the downside, as canola trades right above its nearby lows.
Markets will close early on Friday ahead Christmas, and the thin and choppy pre-holiday trade could lead to some price swings as participants square positions and move to the sidelines.
About 4,000 canola contracts had traded as of 9:00 CST.
