ICE canola downtrend continues Tuesday

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market continued its downward slide at midday Tuesday, hitting fresh two-week lows.

Technical signals kept speculators on the sell side of the market, putting on fresh short positions after covering some of those bearish bets earlier in July.

Losses in outside markets were also spilling over to weigh on the canola market, with the Chicago soy complex, European rapeseed and Malaysian palm oil all weaker on the day.

Relatively favourable North American weather conditions also pressured the market, although the nearby Prairie forecasts remain hot and dry.

An estimated 36,300 canola contracts traded as of 10:26 CDT.

Prices in Canadian dollars per metric tonne at 10:26 CDT:

Canola            Nov   620.70    dn  14.20

Jan   628.80    dn  14.50

Mar   635.60    dn  14.60

May   642.90    dn  14.90