WINNIPEG – The ICE Futures canola market struggled to find direction on Tuesday, following the lead of vegetable oils.
Chicago soyoil took a large drop, but European rapeseed and Malaysian palm oil were both slightly weaker. Crude oil prices advanced one day prior to the United States Federal Reserve’s meeting which will decide on any further key interest rate hikes.
One trader said that while canola had a “sturdy performance”, it would’ve been in the black if it weren’t for a sharp decline in Chicago soyoil.
“(Canola) is a bit oversold and probably due for a bounce. Just when it looked like it was finding a little support, (soyoil) just went for a nosedive. Canola is doing well, but it’s still being pulled down nonetheless,” the trader said.
The Canadian dollar was down two-tenths of a U.S. cent compared to Monday’s close.
Nearly 20,009 canola contracts were traded as of 10:24 CDT.
Price Change
May 739.20 up 0.60
Jul 729.60 dn 0.70
Nov 706.40 dn 2.30
Jan 709.00 dn 3.80
