By Jade Markus, Commodity News Service Canada
WINNIPEG, July 6 – ICE Canada canola contracts were weaker in early activity on Wednesday, as sharp declines in Chicago Board of Trade soybeans continued.
Soybeans moved lower on Wednesday, pressured by beneficial rains in the US Midwest.
Favourable crop conditions across Western Canada added to canola’s losses.
Soy oil was lower in early activity and Malaysian palm oil closed weaker overnight, which caused spillover pressure to canola.
However, losses in the Canadian dollar against its US counterpart underpinned the market and limited declines on Wednesday.
A weaker loonie is bullish for canola as it makes the commodity more affordable to international buyers.
An estimate from the International Grains Council for lower-than-expected canola stocks also capped declines.
The IGC expects global canola and rapeseed stocks to fall to a 13-year-low in 2016/17.
Milling wheat, durum, and barley futures were all untraded and unchanged.
