WINNIPEG – The ICE Futures canola market went down on Monday morning as the May contract approaches the psychological C$740 per tonne level.
While Chicago soyoil moved upwards, European rapeseed and Malaysian palm oil were down. Crude oil is slightly lower after market concerns were eased with the announcement of UBS’s purchase of beleaguered rival Credit Suisse over the weekend.
One analyst said that “everybody” has taken short positions on canola, adding that these positions will remain if crude oil continues to go down. The analyst also said that there is no longer a premium for canola over soybeans and rapeseed oil is now priced similarly to palm oil.
The Canadian dollar was up more than three-tenths of a United States cent compared to Friday’s close.
Nearly 21,807 canola contracts were traded as of 10:24 CDT.
Price Change
May 740.90 dn 10.70
Jul 733.30 dn 11.80
Nov 712.40 dn 14.30
Jan 715.50 dn 15.50
