WINNIPEG – The ICE Futures canola market returned to a selloff on Thursday, following weakness in vegetable oils.
August Chicago soyoil nearly lost two U.S. cents per pound, while Malaysian palm was also down and European rapeseed was mostly lower. Crude oil was up more than US$1 per barrel after another decline in United States stockpiles.
One analyst said canola prices were losing ground due to selling action in the spreads. The analyst added that Monday’s crop conditions report from the United States Department of Agriculture could determine where canola prices go, but there is plenty of room on the downside.
“I think we’re overpriced. We don’t have the exports that we are expecting. End users are thinking they can pick it up at lower prices and right now, I think they’re correct,” the analyst said.
The Canadian dollar was up more than one-tenth of a U.S. cent compared to Wednesday’s close.
Nearly 14,400 canola contracts were traded as of 10:23 CDT.
Price Change
Nov 820.40 dn 10.40
Jan 822.50 dn 10.60
Mar 821.40 dn 8.90
May 817.70 dn 3.70
