By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 26 (MarketsFarm) – Intercontinental Exchange canola futures gave up their overnight gains and were being dragged down by midday Thursday.
A trader said there was an about face in Chicago soyoil as well, which pulled down the Canadian oilseed.
“They were looking fairly firm this morning, but [they] fizzled out. Clearly the market is telling us that we can’t be confident for sure that we haven’t found any kind of a low yet,” he said.
The trader noted that canola remained relatively cheap compared to soyoil. Also that rainfall in South America was keeping a lid on vegetable oil values.
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He also pointed to the soymeal/soyoil spreads, which traders have “careened back and forth,” which has had a significant influence on canola.
The trader lamented that there has yet to be a firm number on the size of the Canadian canola crop.
“We have no idea if Statistics Canada is putting out realistic numbers anymore, but it appears canola supplies are comfortable and demand is good,” he stated, noting supplies are likely to be tight come summer.
Along with soyoil, Chicago soybeans and soymeal were lower as well. Tempering losses were gains Malaysian palm oil and most European rapeseed contracts. However declines in global crude oil prices weighed on vegetable oil values.
The Canadian dollar was lower at mid-Thursday morning with the loonie at 72.31 U.S cents compared to Wednesday’s close of 72.56.
Approximately 30,450 canola contracts were traded as of 10:50 CDT.
Prices in Canadian dollars per metric tonne at 10:50 CDT:
Price Change Canola Nov 670.90 dn 7.20 Jan 687.10 dn 6.80 Mar 696.20 dn 7.20 May 701.50 dn 7.20
