By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 24 (MarketsFarm) – Intercontinental Exchange canola futures continued to retreat at midday Tuesday, adding to Monday’s sharp losses.
An analyst commented there has been a sense of wariness in the commodities markets due to the general economic outlook.
“Everyone is concerned about a recession and how it impacts demand,” he said, noting there’s a lot of fund selling as well.
“I can’t say that I like the action, but at least it’s not volatile,” the analyst added.
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Pressure on canola was coming from weakness in Chicago soyoil, while soybeans and soymeal edged upward. Added to that were losses in European rapeseed and Malaysian palm oil. Declines in global crude oil prices have accelerated, putting increased weight on vegetable oil values.
Agriculture and Agri-Food Canada issued its October supply and demand report late Monday afternoon, showing very little change in its canola data from September. One notable change was the oilseed’s ending stocks for 2022/23 tightened from 1.5 million tonnes to now one million.
With a sharp rise in the United States dollar coupled with that drop in crude oil, the Canadian dollar slid below 73 U.S. cents. By mid-Tuesday morning the loonie fell to 72.75 cents compared to Monday’s close of 73.03.
Approximately 25,050 canola contracts were traded as of 10:34 CDT.
Prices in Canadian dollars per metric tonne at 10:34 CDT:
Price Change Canola Nov 672.20 dn 7.60 Jan 683.50 dn 7.70 Mar 691.60 dn 8.10 May 697.20 dn 8.20
