By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 24 (MarketsFarm) – The ICE Futures canola market was weaker Wednesday morning, with speculative selling a feature.
The nearby July contract dipped back below the psychological C$700 per tonne level, which was bearish from a chart standpoint. New crop November was also testing contract lows.
Good seeding progress across Western Canada and beneficial rains in some dry areas of Alberta added to the weaker tone in canola.
However, gains in Chicago soyoil and a softer tone in the Canadian dollar provided some underlying support. Expectations for tightening stocks were also supportive. Agriculture and Agri-Food Canada lowered their canola ending stocks estimate for the current marketing year to 650,000 tonnes, from 1.0 million in April. New crop ending stocks were pegged at only 600,000 tonnes.
About 14,000 canola contracts had traded as of 8:46 CDT.
Prices in Canadian dollars per metric ton at 8:46 CDT:
Canola Jul 698.30 dn 3.30
Nov 660.20 dn 4.80
Jan 663.60 dn 5.30
Mar 668.00 dn 5.60
