By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 3 (MarketsFarm) – The ICE Futures canola market was weaker at midday Tuesday, as losses in the Chicago Board of Trade soy complex spilled over to weigh on values.
Speculators were noted sellers in the canola market, taking profits on their long positions.
However, hot and dry Prairie weather remained supportive, with anecdotal reports pointing to very low yields across the Prairies this year.
“Generally speaking we have a terrible crop out there, but I don’t think the market cares,” said a trader on losses in canola. He noted that canola was still trading at historically high levels despite the correction lower.
Weakness in the Canadian dollar, which dipped back below 80 United States cents, was somewhat supportive.
About 10,700 canola contracts traded as of 10:47 CDT.
Prices in Canadian dollars per metric tonne at 10:47 CDT:
Canola Nov 829.80 dn 12.40
Jan 823.30 dn 12.40
Mar 815.60 dn 12.50
May 800.00 dn 12.50