WINNIPEG, Sept. 15 (MarketsFarm) – The ICE Futures canola market was weaker at midday Tuesday, retreating from two-year highs as speculators took profits.
After climbing higher for most of the past month, canola was looking overbought from a chart standpoint, according to a broker which accounted for some of the selling pressure. “It’s just a little bit of a setback here,” he said adding “we’re a bit overcooked to the upside.”
Losses in the Chicago Board of Trade soy complex and most other agricultural commodities also weighed on values. “Everything in general is down,” said the broker.
Seasonal harvest pressure was another bearish influence on the market.
However, solid end user demand provided some underlying support. The Canadian dollar was also slightly weaker at midday.
About 15,000 canola contracts traded as of 10:42 CDT.
Prices in Canadian dollars per metric tonne at 10:42 CDT:
Canola Nov 519.80 dn 3.50
Jan 526.80 dn 3.70
Mar 532.50 dn 3.80
May 534.20 dn 2.60