ICE canola weakens in choppy trade

WINNIPEG–ICE Futures canola contracts were mostly lower at midday Tuesday, although activity was choppy as market participants remained focused on the ongoing conflict in the Middle East.

• Crude oil was pressured by comments from United States President Donald Trump claiming the war in Iran could end soon.
• Chicago soyoil, European rapeseed and Malaysian palm oil futures were weaker as well, putting spillover pressure on canola.
• Chart-based positioning contributed to the weakness in canola, amid ideas the recent runup in the futures was overdone.
• The U.S. Department of Agriculture will release updated supply/demand estimates at 12:00 EDT. Traders are only expecting minor revisions to the balance sheets, although any surprises in the data could sway the markets.

• An estimated 56,200 canola contracts traded as of 11:26 EDT.

Prices in Canadian dollars per metric tonne at 11:26 EDT:

Canola            May   724.10    dn  2.30

                  Jul   733.30    dn  2.20

                  Nov   717.40    dn  1.30

                  Jan   723.10    dn  1.50

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