By Dave Sims, Commodity News Service Canada
WINNIPEG, November 17 – ICE Canada canola contracts were weaker Tuesday morning feeling pressure from the Canadian currency.
The Canadian dollar was higher relative to its US counterpart, which made canola less desirable to foreign buyers.
Malaysian palm oil and European rapeseed futures were both weaker which contributed to the losses.
Canola is expensive compared to other vegetable oils which was bearish, according to a trader.
Canola’s January contract was unable to stay above its key support level of C$470 per tonne.
However, Chicago soybeans and soyoil were both higher which limited the declines.
Most traders expect the next StatsCan crop survey to show a larger canola crop than previously reported.
A new report from the United Nations suggests El Nino will be very strong this year, which will negatively impact world crop production.
About 3,800 canola contracts had traded as of 8:50 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:50 CST:
