By Dave Sims, Commodity News Service Canada
WINNIPEG, September 13 – Canola contracts on the ICE Futures Canada platform were lower at 10:35 CDT on Tuesday, tracking losses in the vegetable oil market.
Declines in Chicago Board of Trade soybeans also weighed down values, according to a Winnipeg-based trader.
“We’re seeing crush margins drop seven bucks which is out of the ordinary given a 70 point drop in the Canadian dollar. It just tells you having meal and bean oil down so much isn’t helping,” he explained.
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Yesterday’s production report from the USDA, which predicted larger soybean supplies in the US than initially thought, continues to weigh on the market.
However, weakness in the Canadian dollar (compared to its US counterpart) lent strength to canola, as it makes canola less attractive to overseas buyers.
Cold, wet conditions are being felt across portions of Western Canada, which has thrown a weather premium into the market.
Harvest delays and slow farmer selling were also features, according to the trader.
About 8,200 canola contracts had traded as of 10:35 CDT.
Milling wheat, barley and durum were untraded.
Prices in Canadian dollars per metric ton at 10:35 CDT:
