By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was weaker at midday Tuesday, taking a step back from the five-month highs hit Monday.
Losses in Chicago soyoil accounted for some spillover selling pressure. Traders reacted to news that used cooking oil was not included in newly announced United States tariffs on Chinese imports. Soyoil had climbed higher in recent days on rumours that import duties on cooking oil would be increasing.
Widespread rains across the Prairies may delay seeding operations but were seen as beneficial for crops in the long run, with the improving moisture conditions adding to the softer tone in canola.
The November contract was holding above its 200-day moving average at midsession with the general uptrend still intact despite Tuesday’s small correction.
An estimated 24,200 canola contracts traded as of 10:43 CDT.
Prices in Canadian dollars per metric tonne at 10:43 CDT:
Canola Jul 664.30 dn 3.60
Nov 683.00 dn 4.00
Jan 690.30 dn 3.10
Mar 692.70 dn 5.20
