ICE Canola Midday: Futures sliding back
Weaker soyoil pulling down canola
By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures were lower late Friday morning, getting pressure from sharp declines in Chicago soyoil.
An analyst said uncertainty over United States biofuel policies is driving down soyoil futures, with the spillover pulling down canola.
Losses in Chicago soybeans and Malaysian palm oil added to canola’s downturn. However, that was tempered by gains in European rapeseed and Chicago soymeal. Slight losses in crude oil weighed on the vegetable oils.
Although conditions are largely dry across the Prairies, there is some rain in the forecast, but it’s unlikely to be enough to alleviate the dryness.
While the old crop July canola contract hovered around its 20-day moving average, it held above the technical points.
At mid-session Friday, the Canadian dollar was higher with the loonie at 72.70 U.S. cents compared to Thursday’s close of 72.43.
Approximately 25,200 canola contracts were traded as of 10:38 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Jul 710.20 dn 9.60 Nov 685.20 dn 6.60 Jan 691.70 dn 6.00 Mar 699.20 dn 3.80
