By Dave Sims, Commodity News Service Canada
WINNIPEG, August 12 – ICE Canada canola contracts were mostly lower Tuesday morning, feeling pressure from the Canadian dollar. The loonie was higher relative to its US counterpart which made canola less attractive to out-of-country buyers.
Losses in CBOT soybean oil, Malaysian palm oil and European rapeseed futures were all bearish for the market.
The USDA will release its first in-field estimate of US soybean and corn production this morning (11:00 CT) which will likely influence the market heavily. Traders say there is the potential for extreme volatility as the report is coming just a day after China devalued its currency.
However, participants were reluctant to push the market too
far before the report is released, said an analyst.
Forecasts calling for hot, dry weather have helped to put a weather premium back into the market.
About 3,200 canola contracts had traded as of 8:38 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:38 CDT:
