By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 31 (MarketsFarm) – The ICE Futures canola market was lower at midday Wednesday, seeing follow-through selling pressure after Tuesday’s drop to contract lows.
Losses in crude oil and Chicago soyoil contributed to the softer tone in canola, with relatively favourable Prairie crop conditions also weighing on values.
Manitoba released its latest provincial crop report, pegging canola seeding at 80 per cent complete.
However, canola was looking oversold from a chart standpoint, with solid crush margins also likely keeping end users in the market on a scale-down basis.
Gains in European rapeseed also provided some underlying support.
About 27,750 canola contracts traded as of 10:50 CDT.
Prices in Canadian dollars per metric tonne at 10:50 CDT:
Canola Jul 648.30 dn 9.90
Nov 622.80 dn 5.30
Jan 629.00 dn 4.50
Mar 635.80 dn 3.30
