By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 25 (MarketsFarm) – The ICE Futures canola market weaker at midday Tuesday, as losses in Chicago Board of Trade soyoil and a firmer tone in the Canadian dollar also weighed on prices.
The most active November contract was testing chart support around the C$460 per tonne level.
Recent rainfall across Western Canada was also bearish, as dryness concerns have alleviated somewhat. Chart-based speculative selling contributed to the declines, with some stops hit on the way down.
However, “it’s not as if we’re staring at a whopper canola crop across the Prairies,” said a broker noting some of the major canola growing regions of north and eastern Saskatchewan only received light precipitation.
Positioning ahead of Statistics Canada’s acreage estimate on June 26 was a feature. General expectations are for a decline in the canola number from earlier estimates, but the extent of the revision remains to be seen.
Chicago Board of Trade soybeans were steady at midday, helping underpin canola.
About 11,500 canola contracts traded as of 10:45 CDT.
Prices in Canadian dollars per metric tonne at 10:45 CDT:
Canola Jul 449.60 dn 2.50
Nov 460.00 dn 5.10
Jan 467.20 dn 4.90
Mar 473.70 dn 4.80
Commodity Future Prices
Prices are in Canadian dollars per metric ton