By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were weaker at mid-session Tuesday, due to declines in comparable oils.
“We got a sharp break in [soyoil],” a trader commented, noted the commodity has been prone to pullbacks recently.
He said those losses in soyoil are a result of reduced demand from the biofuel sector and the steady flow of canola oil.
Coupled with rain across the Canadian Prairies, canola continued to be driven lower, the trader added.
Read Also
North American grain/oilseed review: Canola hits two-week highs
Glacier FarmMedia — ICE canola futures were stronger on Friday, hitting their highest levels in two-weeks. Optimism following a recent…
“Canola has little hope. Canola was looking reasonably firm a few days back,” he said, warning if there is more rain across the region that the oilseed could drop further back.
Besides the weakness in the Chicago soy complex, more pressure on the Canadian oilseed came from losses in European rapeseed and Malaysian palm oil. Modest declines in crude oil further exacerbated the situation.
The Canadian dollar turned weaker in the face of strong upticks in its United States counterpart. By late Tuesday morning the loonie fell to 72.75 U.S. cents compared to Monday’s close of 73.22.
Approximately 28,500 canola contracts were traded as of 10:29 CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Jul 620.40 dn 12.60 Nov 637.10 dn 12.00 Jan 645.70 dn 11.40 Mar 650.60 dn 10.90
