By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 24 (CNS Canada) – ICE Canada canola contracts were weaker Friday morning, as commodity markets reacted to the results of the British referendum on leaving the European Union.
The United Kingdom voted 52 to 48 per cent in favour of leaving the EU, which came as somewhat of a surprise to pollsters who were leaning the other way in recent days.
In addition to the general turmoil in the global financial markets brought on by the Brexit vote, canola was also pressured by the relatively favourable crop conditions seen across Western Canada.
The Canadian dollar was down sharply relative to its US counterpart, which helped temper the declines in canola to some extent.
Statistics Canada releases its latest acreage estimates on June 29, and positioning ahead of the report was another feature. Average trade guesses are calling for an increase in canola area from the 19.3 million acres forecast earlier in the year.
About 5,500 canola contracts had traded as of 8:35 CDT.
Milling wheat, durum, and barley futures were all untraded.
