ICE Canola Heads Lower Following Outside Markets

The economic instability gripping Europe over the past few weeks was at the forefront of the financial markets on Tuesday, causing stock markets to move lower and the commodities to follow suit. Overnight losses in e-CBOT soybeans, Malaysian palm oil, and other commodities were all weighing on canola early on Tuesday.

Generally favourable North American crop conditions also remain bearish for canola, according to traders.

However, the activity in the outside financial and commodity markets was also causing the Canadian dollar to weaken sharply relative to its US counterpart. The weaker Canadian dollar helped temper the declines in canola, and was likely encouraging some exporter and domestic crusher pricing.

Heavy rains in some parts of western Canada over the long-weekend were also seen as slightly supportive, as the moisture may cause some seeding delays.

About 900 canola contracts had traded as of 8:30 CDT.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:30 CDT: