By Dave Sims, Commodity News Service Canada
WINNIPEG, December 15 – ICE Canada canola contracts were lower Tuesday morning, tracking losses in the CBOT soy complex.
European rapeseed futures and Malaysian palm oil were both lower which also weighed down canola.
Traders are adjusting positions ahead of Wednesday’s expected interest rate hike in the US.
Crop conditions in South America are improving with rain while farmers in Argentina are preparing for the lowering of the
government’s export tax on soybeans. Once that happens the market could see a large influx of soybeans hit the market.
However, canola is looking quite affordable relative to other soybeans which was bullish.
Crude oil is stronger which could spill over to canola, said an analyst.
About 5,000 canola contracts had traded as of 8:55 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:55 CST:
Price Change
Canola Jan 475.40 dn 2.10
Mar 485.50 dn 1.90
May 492.70 dn 2.20
Milling Wheat Mar 242.00 unch
May 245.00 unch
Durum Mar 315.00 unch
May 320.00 unch
Barley Mar 191.00 unch
May 197.00 unch
