By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 12 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were weaker at midday Wednesday, with double-digit losses in the old crop months.
An analyst said profit-taking could be part of the reason for the pull back, but noted moves of C$15 per tonne either way in canola aren’t too significant given how expensive the Canadian oilseed has become.
He added that positioning ahead of a series of reports from the United States Department of Agriculture (USDA) was also affecting canola values. The USDA will issue its monthly supply and demand estimates this morning along with a number of other reports.
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Declines in the Chicago soy complex and sharp downturns in European rapeseed were weighing on values. But modest gains in global crude oil prices were aiding edible oils and there was support from increases in Malaysian palm oil.
The Canadian dollar was stronger, which also put more pressure on canola. The loonie climbed to 79.91 U.S. cents, compared to Tuesday’s close of 79.33.
Approximately 10,400 canola contracts were traded as of 10:26 CST.
Prices in Canadian dollars per metric tonne at 10:26 CST:
Price Change
Canola Mar 1,009.50 dn 18.60
May 985.40 dn 14.20
Jul 940.00 dn 11.30
Nov 788.60 dn 4.10
