By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 9 – (MarketsFarm) – ICE Futures canola contracts were weaker at midday Thursday, taking back Wednesday’s gains as losses in outside markets weighed on values.
“Canola’s hitched its wagon to European rapeseed,” said an analyst noting that declines in the Matif rapeseed futures over the past week were behind much of the selling pressure in the Canadian market as European crop prospects show some improvement ahead of harvest.
Chicago Board of Trade soyoil futures were also weaker on Thursday.
A lack of significant weather concerns across Western Canada for the time being also weighed on prices, despite seeding delays in Manitoba and ongoing dryness in Alberta.
The nearby July contract fell to its 100-day moving average before uncovering some support. The more active new crop months are still well above that chart point but moved below their 50-day averages on Thursday.
About 14,900 canola contracts traded as of 10:52 CDT.
Prices in Canadian dollars per metric tonne at 10:52 CDT:
Canola Jul 1,105.10 dn 17.90
Nov 1,048.60 dn 14.60
Jan 1,052.20 dn 17.40
Mar 1,054.70 dn 17.50
