ICE Canola Midday: Canadian oilseed pulling back
Down fourth time in 20 sessions
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were lower late Wednesday morning, being pulled down by losses in the Chicago soy complex and European rapeseed.
A broker said today’s trading would mark only the fourth red bar in 20 sessions.
“It’s a phenomenal ride,” he stated, noting the day isn’t over yet.
The broker also suggested canola “could temporarily be out of buyers” as another reason for the declines.
Even with pressure from Chicago soy, he said Canada’s tight canola stocks will limit how far the oilseed will drop.
Support for canola was coming from gains in Malaysian palm oil, which resumed trading after a holiday. However, losses in crude oil weighed on vegetable oil values.
The Canadian dollar was relatively steady at mid-session Wednesday, with the loonie at 69.87 U.S. cents.
Approximately 41,800 canola contracts were traded as of 10:31 am CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Mar 662.10 dn 2.50 May 671.10 dn 4.00 Jul 674.60 dn 4.50 Nov 652.50 dn 1.90
