By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, March, 5 – THE ICE Futures Canada canola market finished weaker on Thursday, as futures followed the path of least resistance lower. A rally, earlier in the day, was gradually erased by mounting pressure from the US soy complex which posted losses.
Weakness in Malaysian palm oil and European rapeseed futures helped to undermine the market.
A labor dispute in Brazil between truckers and the government appears to be over, which was bearish for prices. It comes as the soybean harvest in South America is ramping up.
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The most-frequently traded May contract fell from yesterdays benchmark settling point of C$455.00 per tonne to just above the psychologically important C$450.00 per tonne mark.
However, the Canadian dollar was weaker against its American counterpart which lent some support to canola.
Spring road bans throughout the Prairies will likely keep some producers from making deliveries, which helped limit the losses.
Commercials could soon be on the hunt for bargains, said a trader.
Around 22,076 canola contracts were traded on Thursday, which compares with Wednesday when around 18,266 contracts changed hands. Spreading accounted for 12,864 of the contracts traded.
Milling wheat, barley and durum were all untraded.
