WINNIPEG – The ICE Futures canola market was mixed on Tuesday despite a major downturn in the Chicago soy complex and vegetable oils.
Chicago soyoil lost nearly two United States cents per pound, while Malaysian palm oil was down and European rapeseed was mostly lower. Crude oil showed some slight weakness as Chinese economic concerns were offset by the U.S.’s plan to replenish its strategic petroleum reserves.
One analyst said that with soyoil hitting lows unseen in a couple of years, canola crush margins are taking a tumble. The analyst also said that selling activity is very low considering current prices and incoming dryness on the Prairies.
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“Commercials aren’t going to sell (canola) considering how dry it is on the Prairies. Farmers aren’t going to sell it because they’re cash-adequate. The only seller right now is the funds,” the analyst said. “If you take the canola market down two or three dollars (per tonne), you’re going to see some major fund selling.”
The Canadian dollar was up more than one-tenth of a U.S. cent compared to Monday’s close.
Nearly 19,400 canola contracts were traded as of 10:27 CDT.
Price Change
Jul 734.30 up 3.50
Nov 705.50 up 0.60
Jan 708.30 dn 0.10
Mar 711.20 dn 0.70
