By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 7 (MarketsFarm) – The ICE Futures canola market was weaker Tuesday morning, taking direction from losses in many outside markets.
Chicago soyoil, European rapeseed, and Malaysian palm oil futures were all weaker in overnight trade, although a steadier tone in crude oil did temper the declines in the vegetable oil markets to some extent.
Expectations for a record-large Australian canola crop contributed to the declines, as the country is at a freight advantage compared to Canada to many major canola buyers.
Canola remains stuck in a sideways trading range from a chart standpoint but was drifting below some major moving averages in early trade which could trigger some more speculative selling.
On the other side, wide crush margins remain supportive with a softer tone in the Canadian dollar also tempering the declines.
About 4,800 canola contracts had traded as of 8:49 CST.
Prices in Canadian dollars per metric ton at 8:49 CST:
Canola May 817.80 dn 4.00
Jul 813.00 dn 3.80
Nov 786.60 dn 4.90
Jan 796.20 unchanged
