By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 31 – (MarketsFarm) – ICE Futures canola contracts were lower at midday Tuesday, retreating from earlier gains as a downturn in Chicago Board of Trade soyoil spilled over to weigh on values.
Chart-based speculative selling contributed to the declines, as speculators holding long positions look to exit the front month ahead of its expiry. A lack of willing buyers on the other side likely exaggerated the declines, according to a trader.
Recent strength in the Canadian dollar was also bearish, causing crush margins to deteriorate.
Uncertainty over new crop production provided some underlying support. Persistent rains in the eastern Prairies continue to delay seeding in the region. Meanwhile, dry crops in the western growing regions could use some more moisture.
About 10,000 canola contracts traded as of 10:35 CDT.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
Canola Jul 1,182.30 dn 3.90
Nov 1,069.40 dn 4.00
Jan 1,071.10 dn 6.20
Mar 1,072.00 dn 3.00
