By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 3 (MarketsFarm) – ICE Futures canola contracts fell to fresh contract lows at midday Monday, after an early attempt at correcting higher proved short-lived.
“The charts look ugly,” said a trader on the turn lower in canola.
Weakness in the energy sector and ongoing concerns over the Wuhan coronavirus provided the catalyst for the speculative selling pressure, according to the trader. A lack of significant end user demand also weighed on values.
However, a softer tone in the Canadian dollar provided some underlying support. Ideas that the losses were looking overdone also helped temper the declines.
About 10,000 canola contracts traded as of 10:33 CST.
Prices in Canadian dollars per metric tonne at 10:33 CST:
Price Change
Canola Mar 448.70 dn 1.80
May 457.90 dn 1.90
Jul 464.90 dn 1.80
Nov 473.20 dn 1.90
