By Jade Markus, Commodity News Service Canada
WINNIPEG, February 24 – ICE Canada canola contracts were mixed, but mostly higher, at midday on Wednesday, recovering slightly after Tuesday’s sell-off.
On Tuesday canola markets plummeted with the news that China would be toughening its standards for Canadian canola at the start of April, but one Winnipeg-based analyst says the news has been over-blown.
Chinese officials said they will not be allowing more than one per cent dockage—another term for foreign matter.
“It got over-sold a bit. It hit stops and then it got down farther than was warranted, really,” the analyst said.
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He added that the new standards could mean China will buy slightly less canola from Canada, but usually the country buys what they need in the first half of the season, so its effects will likely be limited.
Losses in Chicago Board of Trade soybeans and soy oil added pressure to canola on Wednesday.
“The whole oilseed complex is fairly subdued, and that’s keeping the whole environment fairly sluggish,” the analyst said.
The Canadian dollar was stronger against its US counterpart at midday on Wednesday, which pushed new crop canola contracts lower.
Malaysian palm oil closed weaker.
About 16,597 contracts had traded as of 10:58 CST.
Milling wheat, durum, and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 10:58 CST:
