WINNIPEG – The ICE Futures canola market extended its downturn on Thursday despite mixed sentiment in comparable oils.
Chicago soyoil was higher to start the day, while Malaysian palm oil was lower and European rapeseed was mixed. Crude oil eased off after making large gains on Wednesday.
One analyst said that one major influence on canola’s decline has been recent cancellations of crop purchases from China, especially that of United States corn.
“That’s what got the ball rolling and then the funds jumped in and they put in fresh short positions,” the analyst said. “We’re technically oversold, but past history has shown we can go lower. But if the weather turns hot and dry, we could go back and forth.”
The Canadian dollar was down one-tenth of a U.S. cent compared to Wednesday’s close.
Nearly 21,800 canola contracts were traded as of 10:28 CDT.
Price Change
Jul 708.00 dn 6.10
Nov 678.80 dn 7.10
Jan 682.00 dn 6.90
Mar 685.90 dn 6.40
