By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was weaker at midday Tuesday, taking back some of Monday’s gains as losses in outside markets spilled over to weigh on values.
Chicago soybeans and soyoil were both lower at midday, with European rapeseed and Malaysian palm oil also posting declines as sharp weakness in crude oil accounted for some of the selling pressure in the world vegetable oil markets.
The failure to hold onto Monday’s gains was bearish from a chart standpoint, with speculators still holding a large net short position in the market.
However, wide crush margins were likely keeping domestic processors showing some demand – at least on a scale-down basis.
An estimated 27,600 canola contracts traded as of 10:46 CST.
Prices in Canadian dollars per metric tonne at 10:46 CST:
Canola Jan 666.10 dn 7.00
Mar 673.30 dn 6.30
May 680.40 dn 6.60
Jul 685.20 dn 6.80
