By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 19 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures continued lower at midday Tuesday, but with declines not as severe as those at yesterday’s close.
“There’s pressure from a lot of sources, but it’s holding up quite firmly,” said a trader, explaining that product values were down by a lot more than canola.
“The Canadian dollar is very strong of late, and that’s adding some pressure on canola,” he continued.
The trader said the nearby November contract was testing support below C$740 per tonne at midday. He estimated the next downside target could be C$730, maybe C$725.
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The trader noted the canola harvest has been rather slow in some areas of the Prairies, such as in Alberta. However, he said harvest selling should be easing up within the next couple of weeks.
Pressure on the Canadian oilseed came from slight declines in Chicago soybeans and soyoil as well as in Malaysian palm oil. Those losses were tempered by upticks in Chicago soymeal and European rapeseed.
With more gains, crude oil prices continued to demonstrate their divergence from the vegetable oils.
The Canadian dollar was on the rise at mid-Tuesday morning with the loonie at 74.46 U.S. cents compared to Monday’s close of 74.12.
Approximately 32,150 canola contracts were traded as of 10:38 CDT.
Prices in Canadian dollars per metric tonne at 10:38 CDT:
Price Change
Canola Nov 735.70 dn 6.20
Jan 744.70 dn 6.00
Mar 751.40 dn 5.60
May 757.90 dn 5.20
