By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Jan. 29 – Canola futures on the ICE Canada trading platform were moving lower at midsession Thursday, following the sharp declines seen in Chicago soyoil futures.
Weakness in Chicago soybean futures and ideas that there are still large supplies of Canadian canola were also bearish, analysts said.
Further downward pressure came from speculative selling, as funds liquidated the large long position they accumulated over the past couple of weeks, brokers added.
Ongoing expectations of record large South American soybean production were also overhanging the oilseed markets.
However, the Canadian dollar was down sharply, testing the 79 cents US mark on Thursday, which was limiting the declines. The soft loonie makes canola more attractive to buyers pricing in US dollars.
Steady commercial demand for canola was also underpinning the market.
As of 10:43 CST Thursday, about 17,100 contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:43 CST:
