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:
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