By Glen Hallick, MarketsFarm
WINNIPEG, July 14 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were pulling back at midday Wednesday, due to a combination of profit-taking and fresh selling coming into the market, according to a Calgary-based analyst.
“What I am sensing is canola just can’t continue to run high, even though our production will be sharply lower,” the analyst stated.
“There’s a thought that [Chicago] soyoil will break back down to 50 cents per pound,” he cautioned, noting that global vegetable oil supplies have increased and prices could fall over the coming weeks or months.
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The analyst said that volatility remained in the market, creating wide swings in prices.
“Between yesterday and today nothing has happened, yet we’ve seen the market fluctuate wildly,” he commented.
The Canadian dollar was relatively steady, with the loonie at 79.96 U.S. cents compared to Tuesday’s close of 79.91.
ICE lowered the daily limit from C$60 per tonne to C$45 for Wednesday’s session.
Approximately 15,150 canola contracts were traded as of 10:36 CDT.
Prices in Canadian dollars per metric tonne at 10:36 CDT:
Price Change
Canola Nov 886.60 dn 30.20
Jan 876.70 dn 30.90
Mar 865.80 dn 26.70
May 848.20 dn 24.40
