ICE Canola Midday: Futures resume falling back
Fund selling, decent conditions underpinning declines
By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures reverted to their downward drive with values notably lower late Wednesday morning.
A broker said fund selling was one of the major factors behind the pullback with another being relatively decent conditions on the Prairies.
The broker stressed that if conditions across the region continue to deteriorate that could generate an upward swing in canola. However, there is some rain in the Prairie weather outlook.
He also noted there are fewer participants who are trading, with that opening the door to larger moves. The trader said farmers are not aggressive sellers at this time.
Additional pressure on canola was coming from losses in the Chicago soy complex, European rapeseed and Malaysian palm oil. Slight increases in crude oil helped to temper the declines in the vegetable oils.
The Canadian dollar fell further at mid-session Wednesday, with the loonie slipping to 72.99 U.S. cents compared to Tuesday’s close of 73.12.
Approximately 28,350 canola contracts were traded as of 10:49 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 685.80 dn 18.30 Jan 694.20 dn 18.20 Mar 700.40 dn 17.90 May 704.70 dn 18.50
To access the latest futures prices, go to https://www.producer.com/markets-futures-prices/
