By Dave Sims, Commodity News Service Canada
WINNIPEG, January 20 – Canola contracts on the ICE Futures Canada platform were weaker at 10:40 CST Wednesday, tracking losses in the CBOT soy complex.
Declines in Malaysian palm oil, European rapeseed futures and crude oil undermined the market.
Concerns about the slowing Chinese economy were bearish for values.
Improvements in the South American soybean crop also weighed on values.
However, general weakness in the Canadian dollar made canola more attractive to international buyers. It also has prompted some producers to hang onto supplies in a bid for higher prices, an analyst said.
“The volumes here are telling me the producer is waiting for C$11.25 or C$11.50 a bushel on old crop and new crop. He’s not a big seller here, that’s why the futures are as strong as they are,” said the analyst.
The technical bias has shifted to the upside, according to a report.
Around 12,000 contracts had traded as of 10:40 CST,
Wednesday.
Milling wheat, barley and durum were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CST:
