By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market fell to fresh contract lows on Thursday, continuing to lack any supportive news.
Losses in Chicago soyoil and a firmer tone in the Canadian dollar contributed to the declines, with speculators thought to be adding to their large short positions. Malaysian palm oil was also weaker on the day, although European rapeseed was slightly firmer.
While scale-down end user buying likely provided some support, export demand continues to run well behind the year-ago level with the market trending lower in an effort to uncover more demand.
Ideas the market was becoming oversold according to some technical indicators helped temper the declines as well.
An estimated 43,800 canola contracts traded as of 10:43 CST.
Prices in Canadian dollars per metric tonne at 10:43 CST:
Canola Mar 573.00 dn 7.80
May 582.60 dn 6.80
Jul 592.10 dn 5.70
Nov 597.40 dn 4.90
