MarketsFarm — Canola values have been at the mercy of volatile financial markets this week, trading in lockstep with headlines of plummeting crude oil values and stock indices.
“We’re getting into a bit of a pattern in the markets,” Ken Ball of P.I. Financial in Winnipeg said, explaining that prices will show some strength, then back off due to lack of consistent buying.
Ball noted buyer caution has caused prices to “get the occasional spurt higher” but ultimately stall out.
This week, prices for ICE Futures’ nearby May canola contract have been between $455.30 and $460.10 per tonne.
Ball noted springtime is normally characterized by high interest in buying, especially when grain markets are relatively low.
“This year, prices came in low enough, and we expected there would be buying interest, but it’s just not showing up yet,” he said.
“We just need to see stock markets settle down,” he added, noting that could take a while.
Weakness in soyoil on the Chicago Board of Trade has also dragged down canola prices. On Monday, May soyoil lost 1.2 cents to close at US$27.54/lb.
— Marlo Glass reports for MarketsFarm from Winnipeg.Tagged Canola, cbot, contracts, crude oil, financial markets, futures, ICE Futures, soyoil