By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 21 (MarketsFarm) – The ICE Futures canola market was weaker at midday Thursday as a negative tone in most outside markets spilled over to weigh on prices.
Chicago Board of Trade soybeans and soyoil were both weaker, with uncertainty over trade relations between the United States and China behind some of the selling pressure.
“The China/U.S. tensions seem to be ramping up, which has caused a lot of markets to go red,” said a broker.
Speculators taking profits on recently acquired long positions added to the softer tone in canola, as the market showed signs of running into resistance from a technical standpoint, according the broker.
The Canadian dollar was weaker, providing some underlying support.
Seeding conditions remain variable across the Prairies. The weather remains relatively favourable in most of Manitoba and Saskatchewan, while precipitation in Alberta was causing delays.
Volumes were light, with about 4,000 canola contracts traded as of 10:38 CDT.
Prices in Canadian dollars per metric tonne at 10:38 CDT:
Canola Jul 469.90 dn 2.70
Nov 476.70 dn 2.60
Jan 483.50 dn 2.00
Mar 490.00 dn 0.90