By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 20 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower at midday Monday, due to weakness in Chicago soyoil and Malaysian palm oil, said a trader.
After being higher earlier, European rapeseed has turned lower to weigh on values as well. Sharp declines in global crude oil prices also added pressure onto edible oils.
“The spec longs are still supporting [canola], keeping it from going too far,” he commented, noting that trading will be erratic during the holidays.
“Things will be choppy going into year end. We will see what happens early in the New Year, what the spec money choses to do. If they chose to reduce positions or bring money back in,” the trader explained.
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He cautioned that the collapse in the oat futures might be indicative of declines in the other commodities, although the other markets appeared to be fine.
The trader pointed to ongoing dry conditions in South America that could pose a threat to large soybean and corn crops in Brazil and Argentina. In turn that would be supportive of North American oilseeds, he said.
The Canadian dollar was lower with the loonie at 77.17 U.S. cents compared to Friday’s close of 77.85.
Approximately canola 10,250 contracts were traded as of 10:35 CST.
Prices in Canadian dollars per metric tonne at 10:35 CST:
Price Change
Canola Jan 1,008.10 dn 6.20
Mar 998.50 dn 3.70
May 962.40 dn 3.00
Jul 910.00 dn 5.20
