By Jade Markus, Commodity News Service Canada
WINNIPEG, December 7 – ICE Canada canola contracts were weaker in early activity on Wednesday, feeling pressure from other vegetable oil markets.
Chicago Board of Trade soy oil was lower Wednesday morning, while Malaysian palm oil declined overnight, which had a bearish effect on canola.
Ideas that South America will produce a large oilseed crop this year also pressured prices.
Australia’s canola crop is expected to be bigger than last year’s, which added to the downside.
However, a slightly supportive number from Statistics Canada on Wednesday underpinned the market and limited losses.
StatsCan expects this year’s production will be about 18.4 million tonnes, which was at the low end of analyst-expectations.
The Canadian dollar was slightly weaker against its US counterpart in early activity, which also capped declines.
About 4,416 canola contracts had traded as of 8:54 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:54 CST:
