By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 15 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower at midday Monday, getting pressure from Chicago soyoil, according to a trader.
However, Malaysian palm oil was higher and there are gains in the front months of European rapeseed. There were also supportive increases in Chicago soybeans and soyoil.
The trader noted a huge liquidation in the soyoil/soymeal spreads, “that’s adding to the pressure in the beanoil.”
The trader also said old crop canola is “massively overpriced” by the specs and that could lead to a major problem down the road.
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“They’re still willing to support it and hold it up. The danger is they’re just building up a crazy spec long position. Once they turn to sell it, no one is going to buy it,” he commented.
The Canadian dollar was pushing higher, with the loonie at 79.89 U.S. cents compared to Friday’s close of 79.59.
Approximately 19,350 canola contracts were traded as of 10:50 CST.
Prices in Canadian dollars per metric tonne at 10:50 CST:
Price Change
Canola Jan 1,018.80 dn 6.50
Mar 982.90 dn 8.60
May 945.90 dn 9.10
Jul 905.00 dn 6.90
