By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 30 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were sharply lower at midday Tuesday, due to widespread profit-taking, according to a trader.
There were steep declines in the Chicago soy complex, particularly with soyoil.
“With beanoil down as hard as it is…canola is looking increasingly overvalued on the old crop,” the trader stated, noting the longs were bailing out.
“If beanoil goes to 50 cents [per pound], for canola to be expensive it only has to be at $800 [per tonne]. It doesn’t need to be at $900 or $1,000,” he added.
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As to whether the declines are longer term, the trader said that depends if soyoil were to remain lower for an extended period of time. Should that not occur, he said canola could then bounce around.
Additional pressure came from weaker values in European rapeseed and Malaysian palm oil. Losses in global crude oil prices also weighed on edible oil values.
With the United States dollar remaining firm, the Canadian dollar was lower, with the loonie at 78.12 U.S. cents compared to Monday’s close of 78.34.
Approximately 13,500 canola contracts were traded as of 10:34 CST.
Prices in Canadian dollars per metric tonne at 10:34 CST:
Price Change
Canola Jan 995.00 dn 32.40
Mar 965.20 dn 32.90
May 924.00 dn 35.20
Jul 885.00 dn 30.50
