By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 21 (MarketsFarm) – ICE Futures canola contracts were lower, but range-bound at midday Tuesday as they often drift at this time of year, according to a Winnipeg-based trader.
He noted that once prices have moved upward they begin to struggle. For instance, the November 2020 contract pushed towards C$500 per tonne and has backed off.
Another factor has been the Chicago soy complex the trader said.
“Soyoil is coming down pretty good. Soybeans are having a heavy day and canola is right there with them,” he commented.
The trader attributed that to the lack of new sales to China, even with the Phase One deal being signed with the United States last week. But he noted the situation isn’t unusual.
“If people are going to think China is going to back up the boat and take all of the soybeans from the U.S., that’s not reality,” the trader stated.
Crush margins for canola have dipped as prices for soyoil are collapsing, he added.
So far today the Canadian dollar was slightly weaker at 76.49 U.S. cents after closing Monday at 76.61.
Approximately 6,200 canola contracts were traded as of 10:42 CST.
Prices in Canadian dollars per metric tonne at 10:42 CST:
Canola Mar 478.80 dn 2.20
May 487.60 dn 2.20
Jul 491.90 dn 2.20
Nov 495.00 dn 1.60