By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, March 30 (CNS Canada) – ICE Canada canola contracts were weaker Wednesday morning, as losses in CBOT soyoil and a firmer tone in the Canadian dollar weighed on prices.
The combination of a rising Canadian dollar and losses in soyoil cuts into crush margins, which makes canola less attractive to both domestic processors and export customers.
Chart-based profit-taking, as canola backed away from nearby resistance, contributed to the early weakness in canola, according to participants.
On the other side, canola was still finding some support from Tuesday’s news that China would delay implementing tighter restrictions on Canadian canola until September. The tighter dockage allowances had been set to go into place on April 1.
Positioning ahead of the USDA’s prospective plantings and quarterly stocks reports on Thursday was expected to be a feature.
About 5,000 canola contracts had traded as of 8:55 CDT.
Milling wheat, durum, and barley futures were all untraded.
