By Glen Hallick, MarketsFarm
WINNIPEG, March 26 (MarketsFarm) – ICE Futures canola contracts were lower on Thursday primarily due to declines in the Chicago soy complex, said a Winnipeg-based trader.
He said the recent rally in soyoil ended much sooner than what the market expected and prices didn’t rise as much as hoped.
“The energy prices are not rebounding much,” the trader commented as to why and noting those are critical to soyoil values.
Chicago soybeans were also lower and soymeal, although up, was beginning to look weak, he said.
Product values have dropped of C$8 so far today on top of a C$11 drop yesterday, he said.
Also, the Canadian dollar has increased “quite a bit faster than anyone expected,” the trader said.
At midday, the loonie was stronger at 71.25 U.S. cents, compared to Wednesday’s close of 69.92.
Approximately 6,800 canola contracts were traded as of 10:51 CDT.
Prices in Canadian dollars per metric tonne at 10:51 CDT:
Canola May 461.90 dn 3.70
Jul 470.70 dn 3.90
Nov 479.00 dn 3.80
Jan 485.00 dn 4.00