WINNIPEG – The ICE Futures canola market was easing off at midday Tuesday in a correction from Monday’s gains.
Chicago soyoil and European rapeseed were down, but Malaysian palm oil was higher. Crude oil was slightly lower after Monday’s price hikes due to OPEC+ decision to severely cut production starting in May. Kurdistan and Iraq have resolved their impasse and the former will resume oil exports this week.
Grain prices, including canola’s, went up on Monday due to spillover from rising crude oil prices. However, one analyst believes that OPEC+’s cuts were due to flailing demand.
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“There’s got to be concern that oil prices can drop. We don’t believe oil prices will hold. The grain market is telling us there’s not a lot of room to move up,” the analyst said. “At the current level, we believe (canola) is at the top end of its current trading window again.”
The Canadian dollar was down one-tenth of a United States cent compared to Monday’s close.
Nearly 19,523 canola contracts were traded as of 10:37 CDT.
Price Change
May 796.70 dn 6.70
Jul 751.90 dn 7.90
Nov 721.30 dn 8.60
Jan 724.50 dn 8.50
