By Terryn Shiells, Commodity News Service Canada
Winnipeg, Jan. 22 – ICE Futures Canada canola contracts were lower on Wednesday, following the losses seen in Chicago soyoil futures, analysts said.
Reports of generally good growing conditions for the upcoming South American soybean crop were bearish for oilseed markets. Brazil’s soybean crop will likely be record large as long as weather stays favourable, traders said.
The large Canadian canola supply situation and problems moving the crop because of Canada’s backlogged grain handling system continued to put downward pressure on the futures.
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Follow-through selling after the technical bias was shifted to the downside by Tuesday’s lower close also weighed on prices.
However, the sharp downswing in the value of the Canadian dollar, which lost more than three-quarters of a cent against the US dollar Wednesday afternoon, limited the declines.
Oversold price sentiment and talk that canola is undervalued compared to other oilseeds kept a firm floor under the market.
About 33,920 canola contracts were traded on Wednesday, which compares with Tuesday when 25,957 contracts changed hands. Spreading accounted for 29,810 of the trades.
Milling wheat, durum and barley futures were untraded.
Settlement prices are in Canadian dollars per metric ton.
