By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was sharply lower at midday Thursday, taking some direction from the Chicago soy complex.
“If (soybean) oil is going to crash like it is today, then canola will just get dragged lower,” said a trader. Losses in European rapeseed and Malaysian palm oil were also weighing on the Canadian oilseed.
However, while relatively favourable growing conditions for soybeans in the United States were behind some of the selling pressure in that market, the trader noted that production concerns in Alberta should be providing some underlying support.
From a chart standpoint, the November canola contract was trading below its major moving averages with a downside target around C$600 per tonne, according to an analyst.
An estimated 27,800 canola contracts traded as of 10:29 CDT.
Prices in Canadian dollars per metric tonne at 10:29 CDT:
Canola Nov 607.50 dn 16.40
Jan 616.30 dn 15.70
Mar 623.50 dn 15.30
May 630.10 dn 15.00
