By Dave Sims, Commodity News Service Canada
WINNIPEG, May 2 – Canola contracts on the ICE Futures Canada platform were weaker at 10:45 CDT on Monday, with losses in soyoil pointing the way lower.
Declines in Malaysian palm oil and Chicago Board of Trade soybeans were also bearish for canola.
A Winnipeg-based trader said canola was holding up well under the stress, but could turn lower if something doesn’t change.
“It’s showing good sturdiness but if the US markets stay weak, ultimately canola might start to buckle under the pressure,” he noted.
Wet weather in the US could cause some US farmers to switch out acres intended for corn into soybeans, according to a report.
However, the Canadian dollar was slightly higher relative to its US counterpart which made canola more attractive to foreign buyers.
Dry conditions in parts of Western Canada have thrown a weather premium into the market.
About 10,000 canola contracts had traded as of 10:45 CDT.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
