By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 30 (MarketsFarm) – The ICE Futures canola market was sharply weaker on Tuesday, dropping below chart support as losses in outside markets spilled over to weigh on values.
Crude oil, Chicago soyoil, European rapeseed and Malaysian palm oil were all weaker, dragging the Canadian oilseed down as well. However, a trader noted that canola was lagging soyoil to the downside, with spreading between the two commodities behind some of the activity.
Forecasts calling for timely rains across most of the Canadian Prairies over the next week were also bearish, although more moisture will be needed through the growing season.
On the other side, tightening old crop supplies and scale-down end user demand provided some support.
About 22,500 canola contracts traded as of 10:40 CDT.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Canola Jul 666.30 dn 17.40
Nov 636.00 dn 17.90
Jan 641.50 dn 17.70
Mar 647.70 dn 17.20
