By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, MB, Aug. 18, 2016 (CNS Canada) – ICE Canada canola contracts posted small losses Thursday morning, as declines in the Chicago Board of Trade soy complex spilled over to weigh on values.
Strength in the Canadian dollar put some further pressure on canola, as the currency neared the 78 US cent mark.
Concerns over declining Chinese demand, due to new dockage rules set to be implemented soon, were another bearish influence, said traders.
However, domestic crush margins remain very attractive for processors, and steady crusher demand underneath the market provided support. The need to keep some weather premiums in the market ahead of the harvest helped limit the downside as well.
Statistics Canada releases its first survey-based production estimates of the year on Tuesday, August 23, and positioning ahead of the report is expected to keep some caution in the futures over the next few days.
About 4,200 canola contracts had traded as of 8:51 CDT.
Milling wheat, durum, and barley futures were all untraded.
