ICE canola down sharply as selloff continues

By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, Jan. 20 (MarketsFarm) – The ICE Futures canola market was down sharply Wednesday morning, posting steep losses for the second day in a row as speculative profit-taking weighed on the overbought market.

Declines in Chicago Board of Trade soybeans, in reaction to beneficial South American rains, contributed to the bearish tone in canola, according to participants. Malaysian palm oil futures were also down overnight.

However, CBOT soyoil futures were turning higher in early activity, which provided some spillover support for canola.

The need to ration demand going forward due to concerns over tightening supplies also underpinned the market.

The Canadian dollar was slightly firmer Wednesday morning, gaining roughly a quarter of a cent relative to its United States counterpart.

About 23,000 canola contracts had traded as of 8:40 CST.

Prices in Canadian dollars per metric ton at 8:40 CST:

Price Change
Canola Mar 650.10 dn 14.10
May 634.90 dn 11.70
Jul 620.30 dn 10.30
Nov 536.40 dn 5.20

Futures Prices as of January 20, 2021

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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