By Glen Hallick
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were dropping back on Wednesday morning due to a “lack of bullishness,” said a trader.
The trader pointed to the weakness dominating the Chicago soy complex today as to why canola was retreating. He noted the soybean harvest is approaching in the United States, the speculative funds are likely to go short and there’s very little U.S. soybeans being exported to China.
“How do you rally a market without China?” the trader posed.
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Additional pressure on canola came from losses in European rapeseed and Malaysian palm oil. Declines in crude oil further contributed to the downturn in the vegetable oils.
With that, the trader said it’s a matter of time before the November canola contract drops below C$600 per tonne.
The Canadian dollar was virtually unchanged by mid-session Wednesday, with the loonie at 72.53 U.S. cents.
Approximately 28,000 canola contracts were traded as of 10:25 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 620.50 dn 9.80 Jan 632.30 dn 10.00 Mar 643.00 dn 10.00 May 652.50 dn 10.10
To access the latest futures prices, go to https://www.producer.com/markets-futures-prices/
