By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 7 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Thursday, hitting fresh lows as speculators added to short positions and concerns over declining Chinese demand continued to weigh on values.
“The news is grim in terms of canola,” said a trader, pointing to trade issues with China, large unpriced old-crop supplies and a bearish outlook for many other new-crop seeding options.
Losses in Chicago Board of Trade soyoil futures and a steady tone in the Canadian dollar also put some pressure on values on Thursday.
However, CBOT soybeans were firmer, which provided some support.
Solid crush margins and ideas that canola is looking overdone to the downside provided also helped temper the declines.
About 10,000 canola contracts traded as of 10:46 CST.
Prices in Canadian dollars per metric tonne at 10:46 CST:
Price Change
Canola May 451.20 dn 1.50
Jul 459.70 dn 4.00
Nov 473.50 dn 2.30
Jan 480.00 dn 2.00
