ICE canola continues lower

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market was weaker at midday Tuesday, seeing a continuation of Monday’s selloff as bearish technical signals, large old crop supplies and only minimal demand weighed on prices.

The widening old/new crop spread signaled a lack of concern over supply tightness, according to a trader who expected there was more room to the downside given the ample old crop stocks still being held by farmers. Relatively favourable growing conditions for the new crop were also bearish, although consistent rains have delayed seeding in some areas.

Losses in the Chicago soy complex also weighed on canola, with European rapeseed also down on the day.

On the other side, a weaker tone in the Canadian dollar provided some underlying support. Ideas that the losses were starting to look overdone also helped temper the declines.

An estimated 37,000 canola contracts traded as of 10:48 CDT.

Prices in Canadian dollars per metric tonne at 10:48 CDT:

Canola            Jul   626.90    dn  7.50

Nov   650.60    dn  6.60

Jan   657.60    dn  6.80

Mar   662.00    dn  7.50