WINNIPEG – The ICE Futures canola market was lower on Wednesday as early strength in the oilseed was erased after the latest key interest rate announcement by the Bank of Canada.
The country’s central bank decided to raise its key interest rate by 25 basis points to 4.75 per cent on Wednesday morning in an effort to combat inflation. The Canadian dollar was up one-third of a United States cent compared to Tuesday’s close.
Chicago soyoil was steady, Malaysian palm oil was mixed and European rapeseed was mostly lower. Meanwhile, crude oil was on the rise.
However, one trader believes that macroeconomic factors are contributing to canola’s weakness, adding that there is spillover from wheat.
“Medium and long-term, canola is still in a down trend,” the trader said. “The Canadian dollar did move up a little bit…The prevailing trend is financial gravity is still pulling it lower.”
Nearly 22,400 canola contracts were traded as of 10:26 CDT.
Price Change
Jul 666.10 dn 3.80
Nov 643.10 dn 4.30
Jan 650.00 dn 3.40
Mar 657.00 dn 1.90
