By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were mostly lower at midsession Wednesday, with an overdue correction according to a trader.
He said the farmers have been very good sellers of canola lately and the speculative funds were covering their short positions. However, outside the market influences were pressuring the Canadian oilseed to pull back.
There were declines in Chicago soyoil, Malaysian palm oil and European rapeseed. A little bit of support came from increases in Chicago soybeans and soymeal. Added to that, small upticks in crude oil were trying to put a lid on further losses in the vegetable oils.
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The trader commented the main focus on the canola market has been yield prospects and how the heatwave across the Prairies has affected them. He said once those yields have been determined, then the focus will shift to demand, which he said that for exports isn’t very strong.
The Bank of Canada announced its second interest rate cut this morning, bringing the central bank’s key lending rate to 4.5 per cent from 4.75.
The Canadian dollar stepped back by late Wednesday morning, with the loonie at 72.50 U.S. cents compared to Tuesday’s close of 72.63.
Approximately 31,600 canola contracts were traded as of 10:21 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 676.10 dn 2.30 Jan 680.40 dn 2.40 Mar 683.10 dn 0.80 May 680.60 up 1.30
