ICE canola correcting from nearby highs Monday morning

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was weaker Monday morning, correcting off the two-and-a-half month highs hit the previous week. Speculative positioning and farmer selling at the highs contributed to the declines.

Sharp losses in crude oil spilled into the vegetable oil markets, as tensions in the Middle East showed signs of easing. European rapeseed and Chicago soyoil futures were both weaker, although Malaysian palm oil was firm.

Solid end user demand underneath the market provided support, with ideas that Canadian canola production may not have lived up to earlier projections also underpinning the market.

About 12,900 canola contracts had traded as of 8:40 CDT.

Prices in Canadian dollars per metric ton at 8:40 CDT:

Canola            Nov   636.20    dn  5.20

Jan   650.60    dn  4.30

Mar   659.00    dn  4.60

May   663.70    dn  5.00