By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 15 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower at midday Tuesday, getting pressure from declines in edible oils, according to a trader.
Chicago soyoil was down hard, with significant pull backs in Malaysian palm oil and European rapeseed. Declines in global crude oil prices further exacerbated the losses in edible oils.
However, the trader stressed that canola remained “ludicrously overvalued” with only the specs trading in the nearby January contract. He noted that sooner or later canola will break, with declines very likely pushing the daily limit.
He added that a weaker Canadian dollar was lending support to canola. The loonie was at 77.48 U.S. cents compared to Tuesday’s close of 77.85.
Approximately 8,450 canola contracts were traded as of 10:26 CST.
Prices in Canadian dollars per metric tonne at 10:26 CST:
Price Change
Canola Jan 994.20 dn 6.30
Mar 971.50 dn 7.70
May 934.50 dn 7.90
Jul 88`.80 dn 9.40
