ICE Canola Midday: Futures continue retreating
But tight supplies in the background
By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures fell back late Wednesday morning, erasing yesterday’s gains.
A trader said the threat of rain for next week was pressuring canola.
This comes after dryness across most of the Prairies pushed canola higher, along with tight old crop supplies which still hover over the market.
The trader added there’s uncertainty over biofuel tax credits in the United States. He said the Environmental Protection Agency is to announce soon whether or not the credits will be continued.
Pressure on canola also came from declines in the Chicago soy complex and European rapeseed, while increases in Malaysian palm oil limited the losses. Gains in crude oil were also capping the downturns in the vegetable oils.
The Canadian dollar was lower mid-session Monday with the loonie at 72.36 U.S. cents compared to Tuesday’s close of 72.60.
Approximately 27,100 canola contracts were traded as of 10:37 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Jul 716.30 dn 15.90 Nov 687.90 dn 6.40 Jan 693.30 dn 6.70 Mar 698.70 dn 6.30
