By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 9 (MarketsFarm) – The ICE Futures canola market was down sharply Monday morning, as a selloff in crude oil weighed on global commodity and equity markets.
Saudi Arabia sparked the losses in oil after announcing it would increase production in April. The world’s largest oil exporter is making the move in an effort to start a price war with Russia, after Russia refused to sign on with an Organization of Petroleum Exporting Countries (OPEC) plan to cut supplies.
Concerns over the COVID-19 coronavirus also remained a bearish factor in the background.
However, the Canadian dollar was also sharply weaker in early activity, losing roughly a penny relative to its United States counterpart, which provided some underlying support for canola.
About 7,500 canola contracts had traded as of 8:33 CDT.
Prices in Canadian dollars per metric ton at 8:33 CDT:
Price Change
Canola May 455.10 dn 4.60
Jul 463.50 dn 4.50
Nov 472.80 dn 3.90
Jan 479.70 dn 3.60
