By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 29 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts remained lower at midday Tuesday, being pulled down by weakness in edible oils, according to a Winnipeg-based trader.
“We kind of rolled over a little bit with the oilseeds. In the [Chicago] soybean complex, beanoil is down hard and [Malaysian] palm oil backed up,” he said.
Besides soyoil being down by about two-thirds of a cent, there was also weakness in European rapeseed.
“Technically we’re looking a little vulnerable, more to the downside,” the trader commented, noting the thing to watch for is if November canola closes today below last week’s low of C$510.40 per tonne. That he said would be “a negative technical set up.”
With the canola harvest picking up across the Prairies, the trader said that’s weighing on values, despite some rain delays this week across the region.
The markets were positioning for tomorrow’s grain stocks report and small grains summary from the United States Department of Agriculture, he said.
The Canadian dollar was providing some support. The loonie was slightly lower, at 74.63 U.S. cents, compared to Monday’s close of 74.75.
Approximately 14,600 canola contracts were traded as of 10:37 CDT.
Prices in Canadian dollars per metric tonne at 10:37 CDT:
Canola Nov 510.70 dn 3.60
Jan 517.80 dn 3.70
Mar 524.30 dn 3.80
May 528.50 dn 3.50