By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 9 (MarketsFarm) – The ICE Futures canola market was weaker at midday Tuesday, taking some direction from losses in outside markets.
Declines in crude oil were spilling into world vegetable oil markets, with Chicago soyoil down sharply at midday.
Concerns over a diplomatic dispute between Canada and China added to the softer tone in canola amid uncertainty over potential export disruptions, according to an analyst.
Statistics Canada pegged canola stocks in the country as of March 31 at 5.95 million tonnes, which would be up from 5.16 million at the same time a year ago but well off the five-year average of 8.76 million tonnes.
The United States Department of Agriculture releases its latest supply/demand estimates on Friday, with positioning ahead of that report likely to encourage speculative positioning over the next few days.
About 19,200 canola contracts traded as of 10:44 CDT.
Prices in Canadian dollars per metric tonne at 10:44 CDT:
Canola Jul 727.20 dn 6.00
Nov 705.50 dn 6.10
Jan 710.10 dn 6.60
Mar 716.10 dn 4.50
