ICE Canada Morning Comment: Canola turns lower
Slips below 20-day moving average
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures stepped back on Thursday morning, correcting a multi-day rally.
While Chicago soybeans dipped there were gains in soyoil and soymeal. There were increases as well in Malaysian palm oil, and in most European rapeseed contracts. Modest upticks in crude oil underpinned the vegetable oils.
Parts of Saskatchewan continued to get rain on Thursday, while the rest of the Prairies are to get very little or no precipitation.
The November canola contract slipped below its 20-day moving averages and remained well back of its other major resistance levels.
Canola crush margins further retreated, with the November positions slipping to C$116 to C$123 per tonne above the futures.
The Canadian dollar swung higher on Thursday morning with the loonie at 73.68 U.S. cents compared to Wednesday’s close of 73.58.
Approximately 13,500 contracts were traded by 8:42 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Nov 581.00 dn 2.10 Jan 593.50 dn 2.20 Mar 604.70 dn 2.70 May 613.20 dn 3.00
