By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 21 (MarketsFarm) – The ICE Futures canola market was posting small losses at midday Wednesday, reacting to conflicting outside forces.
Limit-down losses in Chicago soyoil futures put some spillover pressure on the Canadian oilseed, as soyoil reacted to lower-than-expected biofuel blending requirements announced by the United States Environmental Protection Agency.
However, soyoil had earlier outpaced canola to the upside, with spreading between the two commodities favouring canola on Wednesday.
European rapeseed and Malaysian palm oil futures were also softer, although Chicago soybeans were posting solid gains. Declining crop ratings for the U.S. soybean crop were behind the strength there.
Some areas of Western Canada could also use more moisture, although a trader noted that the canola crop was in decent shape overall with most regions receiving precipitation over the past week.
About 33,000 canola contracts traded as of 10:50 CDT.
Prices in Canadian dollars per metric tonne at 10:50 CDT:
Canola Jul 744.30 dn 1.20
Nov 711.80 dn 3.00
Jan 717.50 dn 3.20
Mar 717.80 dn 7.00
