By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 22 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Tuesday, with speculative selling pressure a feature.
The losses in canola came despite gains in Chicago soyoil futures, with Malaysian palm oil also slightly firmer. However, European rapeseed was weaker and the Canadian dollar was stronger, which both weighed on canola.
“There’s money out there playing the canola market… they push it higher and then they push it lower,” said a trader, noting that the speculators were trading canola against the soy market and taking advantage of thinner volumes.
The resulting wide crush margins make canola very attractively priced from an end user’s perspective, which should be providing underlying support.
About 14,700 canola contracts traded as of 10:44 CST.
Prices in Canadian dollars per metric tonne at 10:44 CST:
Canola Jan 842.40 dn 2.40
Mar 835.90 dn 1.70
May 838.10 dn 1.80
Jul 842.70 dn 1.20
