By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 24 (MarketsFarm) – ICE Futures canola contracts were down sharply at midday Monday, as concerns over the COVID-19 coronavirus led to widespread selling in the global equity and commodity markets.
Speculators were already holding large net short positions in canola, with the underlying bearish sentiment keeping them on the sell side to start the week.
End users were also content to keep to the sidelines and only buy on a scale-down basis as they watch prices fall, according to a broker.
A weaker tone in the Canadian dollar helped temper the declines to some extent. Chart-support was also holding to the downside at midday.
About 21,000 canola contracts traded as of 10:42 CST.
Prices in Canadian dollars per metric tonne at 10:42 CST:
Price Change
Canola Mar 451.50 dn 6.80
May 460.80 dn 6.60
Jul 467.80 dn 6.50
Nov 477.40 dn 5.50
