By Dave Sims, Commodity News Service Canada
WINNIPEG, March 3 – Canola contracts on the ICE Futures Canada platform were weaker at 10:45 CST Tuesday, as the stronger Canadian dollar pushed values lower. The firmer loonie made canola less attractive to domestic crushers and international buyers.
Values were also undermined by losses in US soybeans, soymeal and European rapeseed futures.
Technical indicators were also bearish, according to an analyst.
“Historically when you look at a spread (March/May) going from an inverse to a carrying charge, usually that reflects the nearby values as well, it’s in a precarious situation,” said the analyst.
On the positive side, spring road bans are being implemented throughout parts of Western Canada and producer selling has been sluggish which underpinned futures.
As well, gains in soyoil and Malaysian palm oil supported values.
A truckers’ strike in Brazil appears to have been largely settled but some deliveries have been delayed.
Around 11,500 contracts had traded as of 10:45 CST, Tuesday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CST:
