By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 15 (MarketsFarm) – The ICE Futures canola market was weaker at midday Monday, finding itself caught up in broad selling pressure as concerns over the Chinese economy weighed heavily on world financial markets.
A slowdown in China’s rate of inflation and other soft economic data saw the country’s central bank unexpectedly cut interest rates on Monday, triggering losses in equity and commodity markets. Crude oil, Malaysian palm oil, Chicago soyoil and European rapeseed futures were all weaker – with that selling pressure spilling into canola.
Relatively favouable Midwestern weather forecasts contributed to the declines in the North American grains and oilseeds, but hot temperatures and only minimal precipitation expected for the Canadian Prairies provided some underlying support for canola.
Weakness in the Canadian dollar, which was down by nearly a cent relative to its United States counterpart, also helped temper the declines in canola.
About 9,800 canola contracts traded as of 10:41 CDT.
Prices in Canadian dollars per metric tonne at 10:41 CDT:
Canola Nov 842.00 dn 21.00
Jan 849.60 dn 21.40
Mar 855.40 dn 21.10
May 853.10 dn 25.50
