By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was sharply lower Tuesday morning as activity resumed after Monday’s Canadian holiday.
The November contract fell below the psychological C$600 per tonne level, bringing in additional speculative selling.
Losses in Chicago soyoil accounted for some spillover selling pressure, with European rapeseed and Malaysian palm oil also lower. Broad global economic uncertainty that saw equity markets drop sharply over the past few days was also spilling into the agricultural markets.
Relatively favourable North American growing conditions were another bearish influence, although parts of Western Canada remain in need of more moisture.
About 30,000 canola contracts had traded as of 8:43 CDT.
Prices in Canadian dollars per metric ton at 8:43 CDT:
Canola Nov 590.60 dn 20.30
Jan 600.10 dn 19.40
Mar 608.30 dn 18.70
May 619.00 dn 19.20
