By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was sharply weaker at midday Tuesday, hitting fresh contract lows as a selloff in the Chicago soy complex spilled over to weigh on values.
Expectations for record soybean yields in the United States this year and larger than expected carryout projections kept soybeans and soyoil pointed lower, with weekly U.S. crop condition ratings showing favourable conditions.
Bearish chart signals contributed to the declines in canola, with November hitting the lowest level for the front-month contract in four years.
Ongoing uncertainty over Western Canadian crop conditions remained somewhat supportive, however any end-user bargain hunting was only coming forward on a scale-down basis.
An estimated 33,100 canola contracts traded as of 10:40 CDT.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Canola Nov 573.20 dn 13.90
Jan 584.00 dn 12.90
Mar 592.40 dn 12.60
May 599.50 dn 11.10
