By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 28 (MarketsFarm) – The ICE Futures canola market was weaker at midday Wednesday, as a selloff in most outside financial and commodity markets spilled into grains and oilseeds.
Contracts briefly posted limit-down moves in overnight activity, with the January contract touching a low of C$514 per tonne. Sell stops triggered by fund activity were likely behind that sudden move.
The losses were more subdued by midday, with the January contract down C$9.50 per tonne, at C$534.50.
Renewed concerns over increasing COVID-19 cases and resulting lockdown measures around the world accounted for much of the selling pressure, with losses in equity markets and the Chicago Board of Trade soy complex contributing to the bearish tone in canola, according to traders.
However, the Canadian dollar was also sharply weaker on the day, which provided some underlying support.
About 21,500 canola contracts traded as of 10:35 CDT.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
Canola Nov 534.40 dn 3.10
Jan 534.50 dn 9.50
Mar 539.00 dn 9.00
May 537.50 dn 9.50
Futures Prices as of October 28, 2020
Prices are in Canadian dollars per metric ton