By Dave Sims, Commodity News Service Canada
WINNIPEG, November 19, – Canola contracts on the ICE Futures Canada platform were weaker at 10:50 CST Wednesday, following the soy complex.
“You can feel pressure increasing on the US markets, canola has been pretty sturdy but it can’t resist pressure like this,” said an analyst.
He added the soymeal premium, which had existed in recent weeks due to logistical problems with US railways, has pretty much disappeared.
European rapeseed futures and Malaysian palm oil were lower which pressured the market.
Prospects for a large South American soybean crop remain favourable which was bearish, according to a report.
However, solid demand for canola and a weaker Canadian dollar limited the losses.
Farmer selling remains slow and will likely not improve until January, as many producers will want to wait for a new tax year, said a market-watcher.
About 10,000 canola contracts had traded as of 10:50 CST.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CST:
