ICE canola falling with outside markets

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was weaker at midday Tuesday, taking some direction from outside markets.

Chicago soyoil, European rapeseed and Malaysian palm oil futures were all lower in overnight activity. Speculative profit-taking was said to be behind the selling in palm oil that spilled into the other vegetable oil markets.

Solid export demand underneath the market helped temper the declines in canola. However, there was also some talk in the trade that Chinese tariffs on Canadian canola could be coming within the next week.

From a chart standpoint, the January canola contract was trading just above its 20- and 200-day moving averages, which converge at roughly C$635 per tonne. A move below that chart point would be technically bearish.

An estimated 23,900 canola contracts traded as of 10:45 CST.

Prices in Canadian dollars per metric tonne at 10:45 CST:

Canola            Jan   637.10    dn  7.90

Mar   648.40    dn  7.80

May   656.10    dn  8.30

Jul   660.60    dn  7.60