ICE Canola Midday: Demand on the wane says trader
Prices rationing appears to have worked
By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures were pulling back late Thursday morning, as price rationing has likely worked said a trader.
“Demand may have evaporated in the short term, which the market needed to do,” said the trader.
He noted the market now has become a tug-of-war between that reduced demand weighing on values and dryness concerns on the Prairies adding support.
The trader also said canola was holding up quite well in comparison to the sharp losses in Chicago soyoil.
Declines in Chicago soybeans and European rapeseed also pressured canola, while slight increases in soymeal and Malaysian palm oil lent a little bit of support. Declines in crude oil pulled the vegetable oils lower.
At mid-session Thursday, the Canadian dollar was higher with the loonie at 72.42 U.S. cents compared to Wednesday’s close of 72.33.
Approximately 27,400 canola contracts were traded as of 10:52 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Jul 711.70 dn 4.20 Nov 683.70 dn 2.60 Jan 690.70 dn 1.60 Mar 695.20 dn 2.30
