By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was weaker Wednesday morning, seeing a continuation of Tuesday’s selloff amid a lack of fresh supportive news.
The move below C$650 per tonne in the March contract was bearish from a chart standpoint, encouraging additional speculative selling as fund traders continue to hold a near-record large short position in canola.
Losses in Malaysian palm oil and Chicago soybeans also weighed on canola, although soyoil and European rapeseed were both stronger.
Weakness in the Canadian dollar and scale-down end user demand underneath the market also provided some support.
About 5,700 canola contracts had traded as of 8:43 CST.
Prices in Canadian dollars per metric ton at 8:43 CST:
Canola Mar 639.70 dn 3.40
May 647.90 dn 3.70
Jul 653.40 dn 4.60
Nov 653.60 dn 2.50
