By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 31 (MarketsFarm) – The ICE Futures canola market was sharply lower at midday Monday, taking some direction from a selloff in the Chicago soy complex.
Month-end positioning was likely behind much of the activity, as speculative money was “flushing out of the market”, according to a trader who thought the losses in both canola and the soy complex were overdone from a fundamental standpoint. He added that while there was some rain in the longer-range Midwestern forecasts, hot temperatures were likely causing crop damage.
European rapeseed and Malaysian palm oil futures were also posting losses, with strength in the Canadian dollar contributing to the relative weakness in canola.
About 17,400 canola contracts traded as of 10:50 CDT.
Prices in Canadian dollars per metric tonne at 10:50 CDT:
Canola Nov 783.80 dn 25.30
Jan 786.90 dn 24.80
Mar 788.30 dn 23.70
May 786.40 dn 20.20
