By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 3 (MarketsFarm) – The ICE Futures canola market was narrowly mixed at midday Thursday, with only the nearby November contract holding onto small gains. The market retreated from early advances as losses in Chicago Board of Trade soyoil weighed on values.
Chart-based selling contributed to the declines in the deferred months, as canola ran into upper resistance and overbought price sentiment had traders booking profits.
Positioning ahead of Friday’s stocks report from Statistics Canada accounted for some of the activity. After the government agency revised their old crop canola production estimate higher in a report out earlier this week, traders now expect ending stocks for the 2019/20 crop year likely ended up above earlier industry projections.
The Canadian dollar was sharply weaker relative to its United States counterpart at midday, which provided some underlying support for canola.
About 10,300 canola contracts traded as of 10:44 CDT.
Prices in Canadian dollars per metric tonne at 10:44 CDT:
Price Change
Canola Nov 503.80 up 0.30
Jan 510.70 dn 0.50
Mar 515.90 dn 1.00
May 520.50 dn 1.20
