By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 5 (MarketsFarm) – The ICE Futures canola market was weaker at midday Thursday, falling below nearby support which encouraged additional speculative selling.
The nearby November contract was trading back below C$710 per tonne, hitting fresh three-month lows with the next support at the psychological C$700 per tonne level.
Losses in Chicago soybeans and soyoil contributed to the declines in canola, with European rapeseed and Malaysian palm oil futures also down on the day.
A lack of significant export demand, as Canadian canola remains expensive on the global market, also weighed on values. However, domestic crush margins remain historically wide which should be encouraging scale-down buying interest from processors.
The Canadian dollar was holding relatively steady on Thursday, after moving sharply lower relative to its United States counterpart over the past week.
An estimated 30,000 canola contracts traded as of 10:40 CDT.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Canola Nov 706.90 dn 3.90
Jan 715.50 dn 4.10
Mar 723.90 dn 3.70
May 727.90 dn 4.60
