By Dave Sims, Commodity News Service Canada
WINNIPEG, September 27 – Canola contracts on the ICE Futures Canada platform were lower at 10:35 CDT on Tuesday, following general weakness in the US soy complex and the vegetable oil market.
“I think we’re seeing some hedge pressure showing up here today. The bias in the oilseeds is lower as soybeans fall apart,” said a Winnipeg-based trader and analyst.
Speculation is growing that yields may be all right despite the recent rains, he added.
Uncertainty over how much canola China will buy, added to the bearish tone.
However, commercial interest is growing in nearby contracts which was supportive.
The Canadian dollar was lower relative to its US counterpart, which made canola more attractive to domestic crushers and foreign buyers.
Harvest delays and slow farmer selling helped limit the losses.
About 5,300 canola contracts had traded as of 10:35 CDT.
Milling wheat, barley and durum were untraded.
Prices in Canadian dollars per metric ton at 10:35 CDT:
