ICE Canola Weakens Following Outside Markets

Malaysian palm oil, European rapeseed, and e-cbot soybeans were all lower in overnight trade, lending a bearish tone to the canola market as well, said a market analyst. The weakness in the oilseed markets was tied to expectations for large South American soybean supplies, although concerns about dryness in Argentina will be followed closely.

Losses in the outside equity and crude oil markets will also weigh on canola, according to the analyst.

However, the Canadian dollar was also sharply weaker Tuesday morning, which should help limit the declines in canola. A softer Canadian dollar helps improve crush margins and makes canola more attractive to export customers.

Canadian canola exports continue to move forward at a steady pace, providing firm support for prices, said traders.

Oversold price sentiments should also help underpin the market.

About 680 canola contracts had traded as of 8:46 CST.

Western barley futures were untraded and unchanged in overnight activity.

Prices in Canadian dollars per metric ton at 8:46 CST: