By Marlo Glass, MarketsFarm
WINNIPEG, Apr. 1 – ICE Futures canola contracts were lower at midday Wednesday, due to “considerable pressure” from comparable vegetable oils.
Soyoil on the Chicago Board of Trade was down by over a penny at midday, which one Winnipeg-based trader called “an overwhelming negative factor.” By comparison, canola prices were holding relatively firmly.
“But if these prices stay low, the pressure is going to keep building on canola,” the trader said.
“It’s likely to be forced down.”
Spreading was a supportive factor in trading, as market participants were selling oil and buying canola.
Weakness in the Canadian dollar also provided support to canola values. The dollar was at 70.4 cents at midday.
Approximately 8,500 canola contracts were traded as of 10:45 CDT.
Prices in Canadian dollars per metric tonne at 10:45 CDT:
Canola May 466.00 dn 2.80
Jul 474.80 dn 2.90
Nov 481.80 dn 3.90
Jan 488.30 dn 2.60