WINNIPEG – The ICE Futures canola market suffered its largest losses of the week at midday Thursday as contracts had either hit or were approaching limit down.
The July canola contract has also fallen below the C$800 per tonne mark. A Winnipeg-based trader stated that recent rains had brought downward pressure on the market, despite higher-than-normal temperatures making way into the Prairies. Still, many investors decided not to wait any longer to take their profits.
“These people have huge profits. Some of these positions were probably put in at sub-C$500/tonne on nearby canola and they’ve still got $150 or more profit and they’re just itching to get the money,” the trader explained.
The Chicago soy complex continued to weaken in what analysts believe to be a correction in the market. Soyoil was also approaching limit down and soymeal was in the red after two straight days of gains.
The Canadian dollar weakened 0.5 of a cent at midday.
Nearly 13,600 contracts were traded as of 11:08 a.m. CDT.
Canola Jul 787.10 dn 30.00
Nov 666.40 dn 30.00
Jan 668.40 dn 29.50
Mar 665.30 dn 30.00