By Jade Markus, Commodity News Service Canada
WINNIPEG, August 12 – ICE Canada canola contracts were weaker in early activity on Friday, pressured by advances in the Canadian dollar.
The loonie gained against its US counterpart in early activity, supported by stronger crude oil prices.
Gains in the Canadian currency are bearish for canola as they make the commodity less appealing to international buyers.
Ideas that China could enforce dockage requirements on September 1 further pressured the market. If those regulations come to fruition Canada’s canola sales to China could be dramatically cut.
Chicago Board of Trade soybeans were mixed, but mostly lower, on Friday, which added to canola’s declines.
However, Malaysian palm oil closed higher overnight, which limited losses.
About 1,658 canola contracts had traded as of 8:47 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
