By Dave Sims, Commodity News Service Canada
WINNIPEG, August 11 – ICE Canada canola contracts were mostly lower Tuesday morning, in sympathy with the US soy complex.
Traders were positioning themselves ahead of the release of the USDA World Agricultural Supply and Demand estimates which are
due to be released on Wednesday, August 12. It is widely expected that report will show lower US soybean acreage.
European rapeseed futures and Malaysian palm oil were also lower which contributed to the declines.
Profit-taking may also have been a feature of this morning’s activity, said a trader.
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Participants were reluctant to push the market too
far before the report is released, the trader added.
However, growing conditions for canola continue to improve across Western Canada, putting pressure on prices.
The Canadian dollar was weaker relative to its US counterpart which made canola more desirable to out-of-country buyers.
Forecasts calling for hot, dry weather have helped to put a weather premium back into the market.
About 1,100 canola contracts had traded as of 8:35 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:35 CDT:
