ICE canola weaker Wednesday morning

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was weaker Wednesday morning, taking back some of Tuesday’s gains in sideways trade.

Losses in Chicago soyoil accounted for some spillover selling pressure, with European rapeseed also down on the day. However, gains in Chicago soybeans and a softer tone in the Canadian dollar provided some support. Malaysian palm oil and other Asian markets were closed for the Lunar New Year holiday.

The March canola contract was back below its 200-day moving average after settling just above that key chart point on Tuesday.

Tightening supply projections and the need to ration demand remained supportive for canola from a fundamental standpoint.

About 10,500 canola contracts had traded as of 8:37 CST.

Prices in Canadian dollars per metric ton at 8:37 CST:

Canola            Mar   635.30    dn  4.40

May   644.20    dn  4.60

Jul   649.80    dn  3.80

Nov   637.20    dn  1.60