By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 24 (MarketsFarm) – The ICE Futures canola market was weaker at midday Tuesday, dropping below psychological support as speculative selling weighed on values.
The nearby March contract fell below C$800 per tonne, which was bearish from a chart standpoint. Concerns that Australia’s large canola crop will cut into some Canadian export demand added to the softer tone.
However, domestic crush margins remain strong and scale-down end user demand provided some support.
“The crushers will gladly take cheaper seed and turn it into oil and meal,” said an analyst, although he added that most processors were already operating at close to full capacity.
About 23,100 canola contracts traded as of 10:36 CST.
Prices in Canadian dollars per metric tonne at 10:36 CST:
Canola Mar 797.40 dn 9.30
May 796.80 dn 9.60
Jul 797.80 dn 10.50
Nov 782.60 dn 9.60
