WINNIPEG, Manitoba--Intercontinental Exchange canola futures were lower at midsession on Wednesday, as growers have become interested in selling.
"They've sat through the winter on canola, and then they haven't done any new crop pricing," a trader commented, noting that current prices are still pretty good. However, as spring approaches he warned of a potential downside.
The trader also pointed to the larger-than-expected canola crop in Australia, with the latest projection at 8.27 million tons.
He said Australia's canola exports will definitely take a bite out of those from Canada.
As decreases in global crude oil prices weighed on vegetable oils, losses in European rapeseed and Malaysian palm oil put additional pressure on canola. However, those declines in the Canadian oilseed were being tempered by an upswing in the Chicago soy complex.
The U.S. Department of Agriculture is scheduled to release its March supply and demand report at 11 am CT, with trade expectations calling for little change in U.S. soybeans.
The numbers to watch will be further losses in Argentina soybeans and if Brazil's output is trimmed.
The Canadian dollar was continuing to pull back on Wednesday with the loonie at 72.53 U.S. cents, compared with Tuesday's close of 72.90.
Approximately 16,250 canola contracts were traded as of 11:44 ET.
Prices in Canadian dollars per metric ton at 11:44 ET:
Price Change
Canola May 810.00 dn 2.90
Jul 806.00 dn 2.30
Nov 781.00 dn 0.70
Jan 785.90 d 0.60
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
03-08-23 1211ET
