By Dave Sims, Commodity News Service Canada
WINNIPEG, August 25 – ICE Canada canola contracts corrected higher Tuesday morning just a day after China’s stock market crash pushed the entire vegetable oil market lower.
The US soy complex and Malaysian palm oil were both higher which supported canola.
Global financial markets are generally on the rise this morning along with crude oil which could give canola a bounce, said an analyst.
A weekend (Aug 22-23) of wet and cold weather across parts of the Prairies was also supportive.
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However, the Canadian dollar was higher relative to its US counterpart which made canola less attractive on the international market.
Today’s rally is running into some technical resistance on the charts which could eventually spark some selling, according to a report.
Speculation is rampant that Chinese demand for commodities as a whole will start to lessen in the wake of Monday’s market crash, which was bearish for canola.
About 6,500 canola contracts had traded as of 8:35 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:35 CDT:
