By Dave Sims, Commodity News Service Canada
WINNIPEG, January 20 – Canola contracts on the ICE Futures Canada platform were lower at 10:40 CST Tuesday, following weakness in the US soy complex.
Weakness in Malaysian palm oil and European rapeseed futures were also bearish.
The South America harvest is looming nearer which is pressuring values as expectations are that the crop will be very large.
However, a lack of farmer selling limited the losses, said an analyst. Speculators were also showing some caution.
“Nobody is willing to sell it right now for fear they won’t get it back. You’re going to have a day here where beans are going to be down five cents and canola is going to be down 10 to 15 dollars because all of a sudden there won’t be any buyers at all,” said the analyst.
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He added that over the past six trading sessions canola was down two to four dollars while soybeans were only down 80 cents, further highlighting the notion that canola is overpriced.
The Canadian dollar is sharply lower against its American counterpart this morning which also helped to underpin the market as it made canola more attractive to crushers and exporters.
Around 11,800 contracts had traded as of 10:40 CST, Tuesday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CST: