ICE Canola Plunges with Fund Selling

Market watchers said fund selling was also a factor in the CBOT soy complex, which added to canola’s losses.

The Canadian dollar was another bearish factor on values, brokers said. Canada’s currency had eclipsed the US$1.01 level at midday Friday, more than a half a cent stronger than Thursday’s close.

The strong currency was limiting any export demand, which further undermined the market, experts said.

Profit taking from traders, ahead of the weekend, was adding the market’s unfriendly tone, brokers said.

Losses were tempered by overnight gains made by both Malaysian palm oil and European rapeseed, analysts said.

Also restricting losses were worries that western Canadian producers will not plant enough area to canola this spring to satisfy demand, market watchers said.

At 10:45 CST, there had been about 9,300 canola contracts traded, with about 7,100 of those tied to spreading.

There had been a total of 5 contracts traded in the western barley October future at midsession.

Prices in Canadian dollars per metric ton at 10:45 CST: