By Dave Sims, Commodity News Service Canada
WINNIPEG, December 16 – ICE Canada canola contracts were lower Wednesday morning, following losses in CBOT soyoil.
Malaysian palm oil, European rapeseed futures and US soybeans were also lower which weighed on the market.
Traders are preparing for an expected hike to US interest rates. The US Fed is expected to make an announcement at 2:00 P.M. EST.
The newly-elected President of Argentina is expected to re-value the peso which could affect soybean movements down there. Farmers have been sitting on a large stockpile of soybeans anticipating a lowering of the country’s export tax.
South American weather has been favourable for development of oilseeds, which was also bearish.
However, the Canadian dollar was weaker relative to its US counterpart which typically makes canola more attractive to domestic crushers and foreign buyers.
Slow farmer selling also limited the losses.
About 8,700 canola contracts had traded as of 8:53 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:53 CST:
