ICE canola down sharply at midday Wednesday

By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, July 21 (MarketsFarm) – The ICE Futures canola market was sharply lower at midday Wednesday, posting near-limit-down losses as a number of factors weighed on prices.
“The big money decided to take some money off the table, and there’s a lot of money on the table,” said a Winnipeg-based trader, adding “it’s a flush of money in a thin market, and with everyone going for the door at once – the door is just too small in canola.”
Losses in Chicago Board of Trade soyoil futures and strength in the Canadian dollar combined to cut into crush margins, with the currency move taking C$9 to C$10 per tonne out of the product values for canola, according to a trader.

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Much needed rains in parts of Western Canada were also bearish, although drought concerns remained supportive overall with the moisture at this stage unlikely to improve the yield outlook.
A report from Agriculture and Agri-Food Canada pegging the canola crop at 19.9 million tonnes was another bearish influence, as most in the trade expect production in the 16 million to 17 million tonne range.
About 17,000 canola contracts traded as of 10:49 CDT.

Prices in Canadian dollars per metric tonne at 10:49 CDT:

Price Change
Canola Nov 865.00 dn 44.10
Jan 854.40 dn 37.00
Mar 833.00 dn 41.00
May 816.20 dn 36.60