By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 21 (MarketsFarm) – The ICE Futures canola market was weaker Thursday morning, seeing a modest correction after posting gains for the previous six sessions.
Canola was thought to be looking overpriced from both a technical and fundamental standpoint, with most of the recent strength tied to spillover from outside markets.
Those outside markets were down on Thursday, with Chicago Board of Trade soyoil, European rapeseed and Malaysian palm oil all posting losses.
Continued strength in the Canadian dollar, which was holding above 81 U.S. cents, also weighed on canola.
However, tight supplies and the need to ration demand remained supportive. Updated supply/demand estimates from Agriculture and Agri-Food Canada left their projection for 2021/22 canola ending stocks unchanged at 500,000 tonnes. That compares with the 1.77 million tonne carryout from the previous crop year.
About 5,800 canola contracts had traded as of 8:51 CDT.
Prices in Canadian dollars per metric ton at 8:51 CDT:
Price Change
Canola Nov 945.30 dn 4.00
Jan 937.80 dn 6.80
Mar 921.70 dn 5.60
May 896.60 dn 3.30
