By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 3 (MarketsFarm) – The ICE Futures canola market was weaker at midday Thursday, retreating from earlier gains as a downturn in Chicago Board of Trade soyoil weighed on prices.
Speculative profit-taking accounted for much of the selling pressure, according to a trader, with the reversal in soyoil a bearish influence from a chart standpoint.
However, sharp weakness in the Canadian dollar provided some underlying support, with the currency down by roughly half a cent relative to its United States counterpart.
Persistent Prairie weather concerns also helped temper the declines, as much of Western Canada finds itself in the middle of a heat wave and in need of moisture.
The trader noted that crops were still in relatively good shape, “but we need to see some rainfall within the next week.”
About 11,000 canola contracts traded as of 10:35 CDT.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
Price Change
Canola Jul 896.40 dn 11.80
Nov 748.60 dn 1.60
Jan 741.50 dn 3.00
Mar 730.00 dn 3.60
