By Glen Hallick, MarketsFarm
WINNIPEG, March 17 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were pulling back at midday Wednesday due to profit-taking, according to a Winnipeg-based analyst.
The largest declines were in the old crop months, particularly the May contract.
“Two days ago [May] canola made an all-time record high on the contract at C$810. You can’t go up forever, eventually you have to have new buyers to fuel a bull market,” he explained, noting there has been very little farmer selling lately.
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Also, the analyst said that China has cut back on its oilseed purchases from the United States to wait for the massive Brazilian soybean harvest to hit the global market. That he said has also pulled canola prices down.
Tight supplies remained an underpinning influence on canola values, attempting to stop them from going lower.
A slightly lower Canadian dollar was helping with that as well. The loonie was at 80.10 U.S. cents compared to Tuesday’s close of 80.29.
Approximately 21,000 canola contracts were traded as of 10:35 CDT.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
Price Change
Canola May 777.20 dn 18.10
Jul 733.70 dn 10.50
Nov 628.30 dn 4.70
Jan 629.80 dn 4.90
