By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 3 (MarketsFarm) – Although profit-taking was partly behind the declines in canola futures on the Intercontinental Exchange (ICE) at midday Wednesday, the main driver was really the drop in global crude oil prices, according to an analyst.
“The United States inventories over the last six weeks have been gradually rebuilding. And then there was news that Russia was apparently turning up the taps,” the analyst explained.
The fluctuations in crude oil greatly affect the prices for edible oils, including canola, he added. Crude was down US$2.60 to US$3.00 per barrel at midday.
While there was support for canola from gains in Malaysian palm oil, losses in European rapeseed and the Chicago soy complex weigh on values.
The Canadian dollar was lower with the loonie at 80.48 U.S. cents compared to Tuesday’s close of 80.62.
Approximately 8,450 canola contracts were traded as of 10:27 CDT.
Prices in Canadian dollars per metric tonne at 10:27 CDT:
Price Change
Canola Jan 983.50 dn 7.30
Mar 955.30 dn 8.40
May 923.30 dn 7.40
Jul 881.70 dn 4.00
