ICE Canola Midday: Prices now pulling back
Lower soyoil, farmer selling weigh on values
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures turned around midsession on Friday as they pulled back due to losses in Chicago soyoil.
Gains in Chicago soybeans and soymeal, as well as upticks in European rapeseed and Malaysian palm oil weren’t enough to keep the Canadian oilseed on the positive side. Global crude oil was slightly lower, which placed a little bit of pressure on the oilseeds.
An analyst noted there was farmer selling, which also weighed on canola values.
The November contract was slightly above its 200-day moving average and could slip below it by the close.
Alberta and Saskatchewan are forecast to get rain during the weekend, with Manitoba to see rain early next week. Temperatures are to climb from the low 20’s to the upper 20 degrees Celsius.
Canola exports were small again as the Canadian Grain Commission reported 83,600 tonnes for the week ended May 26. However, at nearly 5.33 million tonnes to date, it’s likely those exports will reach Agriculture and Agri-Food Canada’s new estimate of six million tonnes.
The Canadian dollar was higher by late Friday morning with the loonie at 73.31 U.S. cents, compared to Thursday’s close of 73.11.
Approximately 21,900 canola contracts were traded as of 10:25 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Jul 656.40 dn 3.80 Nov 679.00 dn 4.20 Jan 686.40 dn 4.60 Mar 696.30 dn 1.70
