By Phil Franz-Warkentin, Commodity News Service Canada
January 28, 2015
Winnipeg – ICE Canada canola contracts were down Wednesday morning, as losses in CBOT soybeans and soyoil spilled over to weigh on prices.
European rapeseed futures were also weaker in overnight activity, although Malaysian palm oil moved higher.
Light speculative long liquidation contributed to the declines, as canola was showing signs of running into chart resistance from a technical standpoint, according to participants.
Relatively favourable South American crop conditions also continue to overhang the oilseeds in general.
On the other side, the weaker Canadian dollar helped temper the declines in canola. The currency was down by about a third of a cent relative to its US counterpart, which should make exports more attractive and also help crush margins improve.
About 5,500 canola contracts had traded as of 8:49 CST, with the March/May spread a feature.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:49 CST:
