WINNIPEG – The ICE Futures canola market suffered double-digit losses for the second time in three sessions, dragged down by vegetable oils.
Chicago soyoil was down by more than one United States cent per pound, while European rapeseed and Malaysian palm oil were also in the red. Crude oil was mostly unchanged in the middle of trading.
The Canadian dollar was down less than one-tenth of a U.S. cent compared to Wednesday’s close.
A system will bring rainfall to Saskatchewan later today before moving to Manitoba tonight. High temperatures are expected to be in the low- to mid-20 degrees Celsius.
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One analyst said that instead of buyers acting on deteriorating crop conditions in the U.S., a lack of end user demand and falling soyoil prices are continuing to pressure canola prices. With Statistics Canada set to release its next production report on Sept. 14, the analyst also thinks canola yields may be better than previously thought. Prior to that report, StatCan will publish its stocks report on Friday.
“The crop may be a bit bigger, maybe more than a bit bigger when push comes to shove at the end of the year. But the funds are selling and the biggest danger we have is that farmers are still (net) long,” the analyst said.
About 22,550 contracts had traded at 10:25 CDT. Prices in Canadian dollars per metric tonne:
Price Change
Nov 782.30 dn 12.90
Jan 790.30 dn 12.30
Mar 794.60 dn 11.40
May 794.70 dn 11.80
