The ICE Futures canola market remained pointed lower at midday Tuesday, hitting fresh three-month lows as bearish technical signals and losses in outside markets weighed on values.
Monday’s close below C$620 per tonne in the November contract did damage from a chart standpoint, with speculative traders adding to their large net short positions on Tuesday. Meanwhile, end users appear content to watch prices drift lower, with large old crop carryout supplies and no major concerns over new crop production keeping them only making purchases on a scale-down basis.
The Chicago soy complex was down sharply at midday, accounting for some spillover selling in canola. European rapeseed and Malaysian palm oil futures were also lower.
Statistics Canada releases updated acreage estimates on Thursday, with the United States Department of Agriculture set to put out its own seeded area numbers on Friday.
An estimated 19,500 canola contracts traded as of 10:52 CDT.
Prices in Canadian dollars per metric tonne at 10:52 CDT:
Canola Jul 594.60 dn 6.10
Nov 613.30 dn 4.50
Jan 620.60 dn 3.60
Mar 626.00 dn 2.20
