By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was weaker at midday Wednesday, taking back some of Tuesday’s gains as the overall technical trend remains pointed lower.
“What goes up, must come down,” said one analyst describing the price action in canola. He added that Tuesday’s correction was looking to be more of a “dead cat bounce” than a signal of a turnaround in the market.
Soft export demand and expectations for increased canola carryout supplies also weighed on values, according to a trader, although he expected recent price weakness should be bringing in some end user bargain hunting.
Chicago soybean futures were weaker at midday, but soyoil was higher. European rapeseed and Malaysian palm oil futures were also up on the day, lending some support to canola and helping keep the Canadian oilseed off its contract lows.
An estimated 21,000 canola contracts traded as of 10:56 CST.
Prices in Canadian dollars per metric tonne at 10:56 CST:
Canola Mar 623.40 dn 1.90
May 631.30 dn 1.60
Jul 635.80 dn 2.70
Nov 634.40 dn 2.90
