By Jade Markus, Commodity News Service Canada
WINNIPEG, March 2 – ICE Canada canola contracts were weaker Wednesday morning, with follow through speculative selling after Tuesday’s drop below support.
Canola’s technical bias remains to the downside, market watchers say.
Weaker CBOT soy oil caused spillover pressure in canola, as South America’s soy harvest is progressing faster than normal, which is bearish.
Strong competition in the global vegetable oil market added pressure on Wednesday.
The Canadian dollar was weaker against its US counterpart in early activity on Wednesday, which limited losses in canola, as it makes the commodity more appealing to buyers.
Commercial demand is strong, analysts say, and canola tends to rally at this time of year, which could provide support.
Malaysian palm oil closed stronger overnight.
About 5,171 canola contracts had traded as of 8:40 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:40 CST:
