ICE Canola Midday: Prices lower on weak Chicago soyoil

By Glen Hallick, MarketsFarm

WINNIPEG, March 6 (MarketsFarm) – ICE Futures canola contracts were weaker on Friday due to sharp declines in Chicago soyoil.

A Winnipeg-based trader explained soyoil is quite sensitive to changes in the stock markets and the price of crude oil. This morning the major North American stock markets were down 1.5 to two per cent and crude fell by more than US$3 per barrel. In turn, those losses were being generated by a record rally in the bond market, which stems from the COVID-19 outbreak.

Although canola was down, the trader noted “whatever the United States markets do, canola usually does about half.”

Also, he said the buyer who would normally be purchasing right now are instead being cautious and staying on the sidelines. That means any rallies won’t have the ability to be sustained.

As well, steep losses in European rapeseed weighed on canola values, but were tempered somewhat by gains in Malaysian palm oil.

So far today, the Canadian dollar was steady at 74.47 U.S. cents, compared to Thursday’s close of 74.54.

Also of note, Daylight Savings Time begins on March 8. Remember to move your clocks one hour ahead.

Approximately 8,000 canola contracts were traded as of 10:25 CST.

Prices in Canadian dollars per metric tonne at 10:25 CST:

Price Change
Canola May 459.50 dn 4.00

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