By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 5 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Tuesday, as heightened concerns over declining Chinese demand weighed on values.
Reports that China had cancelled Richardson International Ltd.’s registration to move canola to the country provided the catalyst for the losses, as mounting political tensions between Canada and China have placed the canola sector in the crossfire.
Chart-based selling added to the softer tone, as canola continues to hit fresh lows amid bearish technical signals.
Losses in Chicago Board of Trade soybeans and soyoil also weighed on prices.
However, a softer tone in the Canadian dollar provided some support. Ideas that canola was looking overdone to the downside were also supportive, with recent strength in crush margins likely keeping domestic processors buying on a scale-down basis.
About 12,300 canola contracts traded as of 10:36 CST.
Prices in Canadian dollars per metric tonne at 10:36 CST:
Price Change
Canola May 456.40 dn 6.40
Jul 465.00 dn 6.20
Nov 478.90 dn 3.60
Jan 486.20 dn 3.40
