By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 20 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower at midday Friday, more due to weakening demand than comparable oils being lower, according to a trader.
Also, he said crude oil prices were still down, which added pressure on the vegetable oil market. Once crude recovers, canola and the other veg oil will follow.
That said, the Chicago soy complex was lower, as were Malaysian palm oil and European rapeseed.
Although the nearby ICE canola crush margin contracts almost doubled yesterday, they remained below C$10 per tonne.
Cooler temperatures and rain were dominating the Prairie weather forecast.
The Canadian Grain Commission cited producer deliveries of canola for the week ended Aug. 9 were 100,500 tonnes, with exports of 91,300 tonnes and domestic usage at 154,500 tonnes.
A lower Canadian dollar was adding its support to canola, with the loonie at 77.80 U.S. cents compared to Thursday’s close of 78.17.
Approximately 9,000 canola contracts were traded as of 10:27 CDT.
Prices in Canadian dollars per metric tonne at 10:27 CDT:
Price Change
Canola Nov 883.30 dn 7.20
Jan 870.50 dn 6.80
Mar 853.00 dn 6.30
May 829.80 dn 6.20
