By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 11 (MarketsFarm) – The ICE Futures canola market was weaker at midday Thursday, seeing a continuation of the selling pressure that came forward late in Wednesday’s session.
A ‘risk off’ sentiment in outside macro markets accounted for some of the spillover weakness in canola, with losses in European rapeseed and Malaysian palm oil also bearish. Chicago soyoil futures had dropped sharply earlier in the session but recovered to trade near unchanged.
Tight old crop supplies and the need to ration demand provided some support, with weakness in the Canadian dollar also helping temper the declines in canola.
The United States Department of Agriculture releases its latest supply/demand estimates on Friday, with positioning ahead of that report behind some of the activity.
About 17,100 canola contracts traded as of 10:31 CDT.
Prices in Canadian dollars per metric tonne at 10:31 CDT:
Canola Jul 729.40 dn 5.30
Nov 705.90 dn 5.70
Jan 709.60 dn 6.20
Mar 714.50 dn 4.50
