By Jade Markus, Commodity News Service Canada
WINNIPEG, MB, May 24, 2016 – ICE Canada canola contracts were weaker in early activity on Tuesday, feeling spillover pressure from losses in Chicago Board of Trade soybeans.
Due to unfavourable corn seeding conditions, many US farmers are expected to switch acres to soybeans this year, which is bearish.
Traders are likely to bring canola prices down in line with US markets, analysts say.
CBOT soybeans closed lower on Monday when Canadian markets were closed for Victoria Day.
Beneficial rainfall in parts of Western Canada added pressure to the canola market on Tuesday, as prices had been given a weather premium due to dryness concerns.
Malaysian palm oil closed lower overnight, which furthered canola’s losses.
The Canadian dollar was mostly unchanged against its US counterpart in early activity on Tuesday, but is down from highs seen earlier in the month, which limited losses.
About 3,695 canola contracts had traded as of 8:38 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
