By Glen Hallick, MarketsFarm
WINNIPEG, March 18 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were steady to lower at midday Friday, but with a small gain in the lightly-traded new crop January contract.
A trader said canola was “holding up quite firmly,” noting the spec longs were perhaps propping it up. He cautioned that the Canadian oilseed was overpriced.
“There’s pressure building. The May canola product value is down C$37.90 per tonne right now. Canola is living on borrowed time,” the trader commented.
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“It’s probably going to crack, but it’s a question of when the spec longs are going to cash out of it,” he added.
Declines in the Chicago soy complex and Malaysian palm oil weighed on values, while increases in European rapeseed tempered further losses. Global crude oil prices were mixed, which provided little direction for edible oils.
The Canadian dollar was higher with the loonie at 79.18 U.S. cents compared Thursday’s close of 79.05.
Approximately 4,850 canola contracts were traded as of 10:41 CDT.
Prices in Canadian dollars per metric tonne at 10:41 CDT:
Price Change
Canola May 1,126.40 dn 3.80
Jul 1,097.30 unchanged
Nov 932.00 dn 1.00
Jan 932.60 up 0.30
