By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 4 (MarketsFarm) – The ICE Futures canola market was weaker at midday Wednesday, as losses in crude oil and world vegetable oil markets weighed on values.
Chicago soyoil, European rapeseed and Malaysian palm oil futures were all lower on the day, “and there’s no way canola can withstand all of that pressure,” according to an analyst.
Speculative selling contributed to the declines, although the November contract was holding above the psychological C$710 per tonne level at midday.
Seasonal harvest pressure remained another bearish influence, although operations should be nearing their final stages in most areas. Manitoba’s canola harvest was 86 per cent complete as of Oct. 3, with yields ranging from 20 to 60 bushels per acre, according to the latest provincial report.
Weakness in the Canadian dollar provided some support, with domestic crush margins still historically wide.
An estimated 17,900 canola contracts traded as of 10:13 CDT.
Prices in Canadian dollars per metric tonne at 10:13 CDT:
Canola Nov 711.80 dn 5.60
Jan 720.70 dn 4.70
Mar 728.40 dn 4.30
May 732.70 dn 3.70
