ICE canola weakens with soy complex

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm  – The ICE Futures canola market was weaker at midday Tuesday, taking some direction from losses in the Chicago soy complex as contracts traded just above nearby lows.

European rapeseed and Malaysian palm oil futures were also weaker on the day, although ideas that canola was looking cheap compared to most other oilseeds tempered the losses to some extent, according to an analyst.

The November canola contract settled right around its 20-day moving average on Monday but failed to hold above that key chart point during Tuesday’s trade with speculative selling a feature.

Seasonal harvest pressure was also thought to be weighing on prices, although farmers remain reluctant sellers at current levels.

An estimated 28,800 canola contracts traded as of 10:46 CDT.

Prices in Canadian dollars per metric tonne at 10:46 CDT:

Canola            Nov   572.60    dn 11.00

Jan   586.10    dn  9.70

Mar   598.20    dn  9.00

May   607.70    dn  8.50