By Glen Hallick, MarketsFarm
WINNIPEG, Feb. 13 (MarketsFarm) – ICE Futures canola contracts were steady to lower on Thursday, after recovering from larger losses earlier in the session, but were now lacking direction.
“It’s choppy and jerky. No one is pretty confident on either side of the market right now,” said a Winnipeg-based trader.
He explained there had been “a sharp fall back” in Chicago soyoil after Malaysian palm oil dropped following news of increased deaths and newly reported cases of the coronavirus in China.
“Palm oil is quite sensitive to the coronavirus news as China has been the big buyer of palm oil over the last number of months,” the trader said.
He also said the charts indicate canola wants to go higher, but that would require soyoil to recover and push upwards.
Demonstrations impeding rail traffic across Canada appear to have achieved their desired goal of disrupting the country’s economy, according to reports. The protests are in sympathy with the Wet’suwet’en Nation and have halted or delayed a growing number of trains. The Wet’suwet’en oppose the building of the Coastal GasLink pipeline across their traditional territory. The Canadian Chamber of Commerce called on the federal government to end the protests.
So far today, the Canadian dollar was virtually unchanged at 75.44 U.S. cents.
Approximately 17,300 canola contracts were traded as of 10:32 CST.
Prices in Canadian dollars per metric tonne at 10:32 CST:
Canola Mar 463.20 dn 0.20
May 472.10 dn 0.50
Jul 478.00 dn 0.90
Nov 484.70 dn 1.30
Futures Prices as of February 13, 2020
Prices are in Canadian dollars per metric ton