By Glen Hallick, MarketsFarm
WINNIPEG, March 30 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were “pretty ugly” at midday Tuesday, according to a Winnipeg-based trader.
Steep declines in Chicago soyoil were contributing to the sharp losses in canola as the funds were liquidating the former.
“There are definitely specs that are worried about the United States Department of Agriculture) reports tomorrow. They’re worried about how the technical picture is set up,” the trader explained.
On Wednesday, the USDA is scheduled to release its quarterly grain stocks report as well as its first survey-based planting projections for 2021.
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Further adding to the woes in canola and other edible oils were Malaysian palm oil tipping lower, Argentina getting rains that will help its soybean crop, China backing away from the veg oil market, and the Brazil soybean harvest at about 70 per cent complete, the trader listed.
Along with tight supplies, a weaker Canadian dollar could not stem the declines in canola. The loonie was at 79.19 U.S. cents compared to Monday’s close of 79.40.
Approximately 13,500 canola contracts were traded as of 10:50 CDT.
Prices in Canadian dollars per metric tonne at 10:50 CDT:
Price Change
Canola May 727.40 dn 28.80
Jul 690.00 dn 26.20
Nov 589.10 dn 16.40
Jan 593.40 dn 15.70
