ICE Canola Midday: Following soyoil to downside
Forecast of rain weighing on canola
By Glen Hallick
Glacier Farm Media | MarketsFarm – Canola futures on the Intercontinental Exchange were lower on late Wednesday morning, following Chicago soyoil to the downside.
An analyst said the recent spikes in canola were a “soyoil-led rally.” Now that the latter was lower, canola was as well. He added that should the forecast rains for the Prairies develop, those would put pressure on canola.
However, the analyst said dry conditions across the region along with uncertainty of the size of the new canola crop were also affecting the oilseed’s prices.
Gains in Chicago soybeans and soymeal as well as those in Malaysian palm oil and European rapeseed were tempering further declines in canola.
However, a turn around in crude oil to the downside pressured the vegetable oils.
At mid-session Wednesday, the Canadian dollar was weaker with the loonie at 73.07 U.S. cents compared to Tuesday’s close of 73.51.
Approximately 38,950 canola contracts were traded as of 10:35 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Jul 740.60 dn 3.90 Nov 738.00 dn 1.80 Jan 746.90 dn 1.80 Mar 752.40 dn 2.30
