By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 10 – ICE Canada canola contracts were posting small losses Thursday morning, with declines in the CBOT soy complex behind some of the early weakness.
Malaysian palm oil and European rapeseed futures were also down overnight, with the ongoing weakness in crude oil and resulting global economic uncertainty spilling into the vegetable oil markets as well.
Large Canadian supplies, improving South American crop conditions, and nearby technical signals that are pointing lower added to the softer tone.
However, the losses were tempered by the ongoing weakness in the Canadian dollar. Recent improvements in crush margins were also supportive, as canola is looking more attractively priced for end users compared to other options.
About 4,500 canola contracts had traded as of 8:51 CST, with the January/March spread a feature as participants roll out of the front month.
Milling wheat, durum, and barley futures were all untraded.
