By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 27 (MarketsFarm) – The ICE Futures canola market was weaker at midday Thursday, taking back Wednesday’s gains as the futures continued to hold within a sideways trading range.
The largest losses were in the nearby November contract, with thin volumes exaggerating moves in the front month as traders clean up positions ahead of the contract’s expiry.
Losses in Chicago soyoil and a firmer tone in the Canadian dollar contributed to the selling pressure in canola. However, Malaysian palm oil held reasonably steady and European rapeseed futures were higher on the day.
Canola crush margins tightened slightly on Wednesday but remain wide overall which should be encouraging end user demand on any dips in the market.
About 12,250 canola contracts traded as of 10:47 CDT.
Prices in Canadian dollars per metric tonne at 10:47 CDT:
Canola Nov 894.00 dn 42.30
Jan 870.30 dn 6.00
Mar 875.70 dn 4.60
May 880.40 dn 4.90
