By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were lower Tuesday morning, with the nearby July contract slipping below C$700 per tonne.
There were concerns in the trade that canola was becoming overvalued, and a correction was needed. This is despite shrinking old crop supplies. However, there are also thoughts that Statistics Canada might have underestimated the canola harvest by up to 1.5 million tonnes.
Additional pressure on the Canadian oilseed came from declines in the Chicago soy complex, Malaysian palm oil and most European rapeseed contracts. Meanwhile, strong gains in crude oil tempered further losses in the vegetable oils.
The Canadian dollar was higher on Tuesday morning, with the loonie rising to 72.51 U.S. cents, compared to Monday’s close of 72.40.
Approximately 9,000 contracts were traded by 8:36 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Jul 692.40 dn 9.30 Nov 650.50 dn 6.40 Jan 658.90 dn 6.80 Mar 667.00 dn 6.30
