WINNIPEG – The ICE Futures canola market was slightly weaker due to mixed sentiment in comparable oils.
While the Chicago soy complex and Malaysian palm oil continued to drag canola prices down, gains in European rapeseed and crude oil were limiting canola’s losses.
One analyst said that canola is in a “falling knife market”, unsure on where its low point will be.
“Is it oversold? Yes, it is. Once the market catches its breath, I can see it easily recover C$20 to C$30 per tonne, but where’s the starting point?” the analyst said. “If we break (below) C$680/tonne on the new crop, I think the market will suggest we might go down to C$650/tonne.”
On Wednesday, the United States Federal Reserve announced it was raising its key interest rates by one-quarter of a point despite an ongoing banking crisis.
The Canadian dollar was up four-tenths of a U.S. cent compared to Wednesday’s close.
Nearly 20,113 canola contracts were traded as of 10:29 CDT.
Price Change
May 718.00 dn 2.00
Jul 702.10 dn 3.60
Nov 679.20 dn 3.90
Jan 682.90 dn 4.00
