By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 28 – ICE Canada canola contracts were weaker Wednesday morning, with declines in CBOT soybeans and a firmer Canadian dollar behind some of the early selling pressure.
The nearby technical bias has also shifted lower, as Tuesday’s attempt at a corrective bounce proved short-lived.
Ideas that Canada’s canola crop likely ended up larger than originally thought weighed on values as well, according to participants.
Improving weather forecasts out of South America were another bearish influence in the background, although traders also said that there were still more than enough areas of concern to keep some premiums in the market.
Solid end user demand provided some support on a scale-down basis, as the domestic crush remains very active and export business is steady. Overnight gains in Malaysian palm oil and a steady tone in CBOT soyoil helped underpin canola as well.
About 6,000 canola contracts had traded as of 8:49 CDT.
Milling wheat, durum, and barley futures were all untraded
