By Jade Markus, Commodity News Service Canada
WINNIPEG, May 19 – ICE Canada canola contracts were weaker on Thursday, pressured by spillover losses in Chicago Board of Trade soybeans and soy oil.
The psychology in US markets shifted overnight, one US trader said, as the greenback gained, which caused traders to flush-out the market.
“The higher US dollar puts pressure on prices, but now it’s possibly triggering a change with some of the money that’s been invested in buying commodities as-of-late,” he said.
Fund-activity had propped up the soybean market in previous sessions.
He added that the soy oil market has collapsed, which pressured canola, especially as the market lacks fundamental news.
Losses in Malaysian palm oil added to the declines.
However, canola held some strength compared with US markets, as weakness in the Canadian dollar had a bullish effect on prices.
About 8,250 contracts had traded as of 10:37 CDT.
Milling wheat, durum and barley futures were all untraded and
unchanged.
