By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 2 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Thursday, testing fresh multi-year lows for the fourth-straight session as bearish chart signals kept speculators on the sell side.
Losses in the Chicago Board of Trade soy complex contributed to the weaker tone in canola, as soybeans reacted to softer-than-expected weekly export sales.
Canada’s ongoing trade dispute with China and a lack of end user demand also weighed on values.
While expectations for a reduction in seeded canola area this year provided some underlying support, large old crop supplies were seen as limiting any concerns over a smaller new crop.
About 13,000 canola contracts traded as of 10:52 CDT.
Prices in Canadian dollars per metric tonne at 10:52 CDT:
Price Change
Canola Jul 432.80 dn 3.60
Nov 447.80 dn 2.70
Jan 454.80 dn 2.70
Mar 460.70 dn 3.10
