WINNIPEG – The ICE Futures canola market was taking a step back after nine straight positive sessions, despite mixed sentiment in comparable oils.
Chicago soyoil was on the rise, but European rapeseed and Malaysian palm oil were both lower. Crude oil was higher due to supply cuts from Russia and a slowly recovering Chinese economy.
One analyst said that canola was overbought and funds have decided to reverse their positions. The analyst also said that despite hot and dry weather, it is too early to write off the Western Canadian canola crop just yet.
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“This could be a perfect storm just waiting to happen here: farmer selling, the technical market selling, and no demand at these kinds of prices. If I was a producer, I would lock in some good profits right now. This is a full-bore weather market and harvest is (two months away),” the analyst said.
The Canadian dollar was down two-tenths of a United States cent compared to Thursday’s close.
Nearly 22,770 canola contracts were traded as of 10:24 CDT.
Price Change
Nov 830.00 dn 13.00
Jan 829.40 dn 10.40
Mar 825.50 dn 6.60
May 817.00 dn 3.80
