WINNIPEG – The ICE Futures canola market took a plunge on Tuesday, ending a six-day rally for the oilseed, mainly due to a lack of support from vegetable oils.
Chicago soyoil, European rapeseed and Malaysian palm oil were all firmly in the red. Crude oil also went down due to supply increases as well as demand concerns from China.
One analyst said that Tuesday was a “technically ugly day” for canola and stated that if prices fall below the psychological C$800 per tonne mark, they will encounter resistance to the upside.
The Canadian dollar was down less than one-tenth of a United States cent compared to Monday’s close.
Rain is expected for much of the Prairies with the greatest amounts forecast for parts of central Alberta and central Saskatchewan.
Nearly 24,050 canola contracts were traded as of 10:17 CDT.
Price Change
Nov 792.70 dn 16.70
Jan 798.40 dn 16.70
Mar 799.80 dn 16.20
May 798.50 dn 15.50