ICE Canola Midday: Prices now receding
Canola 'overbought' says analyst
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures turned lower at midday Friday, in a likely sell-off ahead of the weekend.
November options are set to expire today with Oct. 31 scheduled for first notice day.
An analyst commented canola was “overbought” stochastically, but noted the market wasn’t bearish.
Pressure on the Canadian oilseed also came from declines in the Chicago soy complex, European rapeseed and Malaysian palm oil. However, modest gains in crude oil tempered further losses.
Also underpinning canola were ongoing concerns over production this year. Many in the trade believe there was far less of the oilseed harvested this year than the nearly 19 million tonnes estimated by Statistics Canada. Projections of 18 million to 18.5 million tonnes have become more common. Meanwhile, StatCan will issue its updated production numbers in December.
The Canadian Grain Commission reported canola exports for the week ended Oct. 20 were 253,000 tonnes compared to 384,800 the previous week. However, year-to-date exports of 2.59 million tonnes are more than twice the amount shipped overseas this time last year.
By late Friday morning, the Canadian dollar stepped back to 72.10 U.S. cents compared to Thursday’s close of 72.23
Approximately 29,100 canola contracts were traded as of 10:25 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 634.50 dn 4.10 Jan 648.50 dn 4.50 Mar 659.00 dn 3.60 May 665.50 dn 2.40
