By Glen Hallick, MarketsFarm
WINNIPEG, March 29 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were down sharply at midday Tuesday, as events in Ukraine triggered a sell-off.
Russia stated that it was scaling back its operations around the Ukrainian capital of Kyiv, as well as Chernihiv to the north. That initially sent global crude oil and edible oil prices into a downward spiral, but those markets have pulled back somewhat from larger declines.
A broker said, “canola was relatively weak at the moment” at about C$20 per tonne lower than the Chicago soy complex.
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“It was wildly overvalued and the money is flushing the other way now,” he commented.
The trader added this is part of the nature of a small market such as canola. That it gets pushed too far one way or the other, but he noted the Canadian oilseed could soon find support.
He also stressed there still is a mountain of spec money in the ag markets. The turn of events in Ukraine could result in an exodus of that money or prove to be the markets having a case of the jitters.
The Canadian dollar was higher with the loonie at 79.88 U.S. cents compared to Monday’s close of 79.74.
Approximately 14,200 canola contracts were traded as of 10:35 CDT.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
Price Change
Jul 1,093.00 dn 27.40
Nov 951.10 dn 17.00
Jan 951.00 dn 17.00
