By Glen Hallick, MarketsFarm
WINNIPEG, June 17 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were weaker at midday Friday, due to tumbling crude oil prices weighing on vegetable oil values.
“Crude oil is the big mover. The overall macro is this recession is going to cause oil to decline,” an analyst commented.
A number of central banks have raised their lending rates as a means to curb inflation, but the markets fear those actions already have or soon will trigger an economic recession.
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That saw steep losses in Chicago soyoil, which spilled over into canola. Malaysian palm oil incurred more moderate losses in its front months, while European rapeseed was mixed.
Added to the mix is a measure of seasonal pressure as spring planting has pretty much wound up across the Prairies. However, there is still some uncertainty until the crops have adequately developed.
That weakness in crude oil saw the Canadian dollar plummet to 76.58 U.S. cents, compared to Thursday’s close of 77.35.
Approximately 20,500 canola contracts were traded as of 10:30 CDT.
Prices in Canadian dollars per metric tonne at 10:30 CDT:
Price Change
Canola Jul 1,050.60 dn 22.90
Nov 1,001.60 dn 21.60
Jan 1,007.70 dn 20.50
Mar 1,012.20 dn 19.10
