By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 26 (MarketsFarm) – The ICE Futures canola market was down sharply at midday Friday, as speculators continued to book profits on their large net long positions ahead of the weekend.
Losses in Chicago Board of Trade soyoil and a firmer tone in the Canadian dollar contributed to the weakness in canola, although canola was outpacing the U.S. market to the downside at midday.
Ideas that end user demand was backing away, as the market did its job of rationing demand, also weighed on values.
Weekly export data from the Canadian Grain Commission showed that only 129,100 tonnes of canola were exported during the week ended March 21, which was less than half of what moved the previous week.
However, the underlying fundamentals of tight old crop supplies remain supportive, making the losses a buying opportunity from a chart standpoint.
About 13,500 canola contracts traded as of 10:38 CDT.
Prices in Canadian dollars per metric tonne at 10:38 CDT:
Price Change
Canola May 753.00 dn 28.50
Jul 710.80 dn 21.40
Nov 600.30 dn 9.20
Jan 604.00 dn 8.80
