By Jade Markus, Commodity News Service Canada
WINNIPEG, December 7 – ICE Canada canola contracts were mostly lower at midday Monday, tracking Chicago Board of Trade soy products.
Despite a weaker Canadian dollar, canola stuck to following CBOT markets lower at midday on Monday.
Canola remains moderately cheap relative to the US markets, according to one Winnipeg-based trader.
“It takes time for the currency factor to filter in, it doesn’t happen immediately at all times, so for now we’re just quietly following.”
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He added that canola was hit hard by estimates from Statistics Canada, which revised this year’s production upward by about 2.9 million tonnes.
The trader said markets didn’t look like they were hit hard since they closed unchanged, but if canola followed US markets on Friday it would have been up C$15 or C$16 dollars per tonne.
“That’s going to keep canola really subdued here, the fact that there’s a lot more out there than traders thought.”
Buyers are likely to be a little bit more in control now, and they’ll be less eager to bid aggressively, he said.
Malaysian palm oil closed higher.
The Canadian dollar was sharply weaker relative to its US counterpart at midday on Monday, sitting at its lowest level in 11 years.
About 16,183 canola contracts had traded as of 10:50 CST.
Milling wheat, durum, and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 10:50 CST:
