By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 6 – (MarketsFarm) – ICE Futures canola contracts were lower at midday Wednesday, as speculators continued to book profits on their large long positions.
Softening crush margins were making canola look overpriced to end users, according to a broker accounting for some of the weakness.
Losses in outside markets, including the Chicago Board of Trade soy complex and European rapeseed futures, contributed to the declines in canola.
The Canadian dollar was slightly weaker at midday, providing some underlying support. Tight old crop supplies also remained supportive, although much of the attention in the market is shifting to the new crop and expectations for a return to normal yields in 2022.
About 11,500 canola contracts traded as of 10:43 CDT.
Prices in Canadian dollars per metric tonne at 10:43 CDT:
Price Change
Canola May 1,133.50 dn 14.30
Jul 1,109.60 dn 13.60
Nov 993.00 dn 7.70
Jan 992.80 dn 7.10
