By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 29 (MarketsFarm) – The ICE Futures canola market was weaker Tuesday morning, seeing some follow-through selling after Monday’s losses as investors continued to liquidate recently placed long positions.
Early declines in Chicago Board of Trade soybeans and soyoil accounted for some spillover selling pressure in canola, with the losses in the United States market tied in part to expectations for declining Chinese demand.
The advancing Prairie harvest also weighed on canola values, with generally favourable weather conditions in most areas.
Solid end user demand provided some underlying support. Overnight gains in Malaysian palm oil were also supportive.
The Canadian dollar was holding steady in early activity.
About 5,600 canola contracts had traded as of 8:41 CDT.
Prices in Canadian dollars per metric ton at 8:41 CDT:
Canola Nov 508.30 dn 6.00
Jan 515.70 dn 5.80
Mar 522.30 dn 5.80
May 526.20 dn 5.70