WINNIPEG – The ICE Futures canola market was taking a tumble on Thursday, as it fell past support levels as it followed the lead of most vegetable oils.
Chicago soyoil was down by more than one United States cent per pound, while Malaysian palm oil was also lower and European rapeseed was mixed. Crude oil was in the red after the U.S. eased sanctions on Venezuelan oil in exchange for free elections to take place in the South American country.
The Canadian dollar was down by one quarter of a U.S. cent compared to Wednesday’s close.
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High temperatures on the Prairies will range from the teens to the low-20 degrees Celsius. Edmonton and Winnipeg will see some rain, but the rest of the region will be clear and sunny today.
One analyst said that “the spreads are falling apart”, which could be due to a slowdown in exports or sales cancellations.
“The way that the spreads are behaving, that they’ve fallen right apart on the canola, kind of tells us that the fundamental structure has changed,” the analyst said. “Last week, the spreads were tightening, which was suggesting that there’s nearby cash tightness and the market needs to pull stocks from the farmer. But this behaviour today tells us there’s a fundamental shift in the market. Something has changed.”
About 53,100 contracts have traded at 10:33 CDT. Prices in Canadian dollars per metric tonne:
Price Change
Nov 693.70 dn 18.00
Jan 706.10 dn 12.60
Mar 714.40 dn 11.10
May 720.20 dn 8.90
