ICE canola back at new lows

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market was weaker at midday Friday, falling to fresh contract lows as losses in outside markets spilled over to weigh on prices.

Chicago soyoil was also trading at fresh contract lows, while European rapeseed was trading just above its weakest levels in five months.

Thursday’s late retreat from earlier gains was bearish from a chart standpoint for canola, with the overall technical indicators still pointing lower and keeping speculators adding to short positions.

A lack of any major fresh weather concerns across the Prairies also weighed on prices, although heat and dryness earlier in the growing likely cut into yield potential in some areas.

An estimated 21,500 canola contracts traded as of 10:38 CDT.

Prices in Canadian dollars per metric tonne at 10:38 CDT:

Canola            Nov   564.60    dn  13.20

Jan   575.20    dn  13.10

Mar   583.50    dn  13.20

May   588.10    dn  13.90