By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 3 (MarketsFarm) – ICE Futures canola contracts were lower at midday Friday, stemming from a drop in the Chicago soy complex.
The latter was due to the United States drone attack over Baghdad that killed a top Iranian general, which dramatically increased tensions in the Middle East.
“At the moment about 90 per cent of what we’re seeing is spinning off of U.S./Iran tensions,” a Winnipeg-based trader commented, adding the attack is a powerful event to cause people to sell.
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He said the markets can only wait to see if this turns out to be, “a one-day flash in the pan, or is there more to come?”
With canola having lagged a fair bit behind soyoil of late, the affect hasn’t been as severe. The trader said product values were down $7 to $9 while canola was down far less.
As for the Canadian dollar, he said the fact that it’s been stable around 77 U.S. cents was somewhat helpful, but the loonie was still high.
So far today the Canadian dollar was at 77.03 U.S. cents compared to Thursday’s close of 76.97 U.S. cents.
Approximately 11,100 canola contracts were traded as of 10:36 CST.
Prices in Canadian dollars per metric tonne at 10:36 CST:
Price Change
Canola Mar 478.70 dn 1.30
May 487.60 dn 1.50
Nov 496.00 dn 2.00
