By Glen Hallick, MarketsFarm
WINNIPEG, Feb. 3 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were mostly lower at midday Wednesday due to weakness in comparable edible oils.
Chicago soyoil was slightly lower, along with larger declines in European rapeseed and Malaysian palm oil.
A Winnipeg-based trader commented there’s ongoing liquidation of the soon to expire March contract.
“We’ll see what the open interest is tomorrow on the March,” the trader said.
Of particular note in trading so far today was a sharp spike in volume for the November contract, which was outpacing the other active months by a wide margin. There was speculation that it could be China seeking to acquire new crop contracts, but the trader wasn’t entirely convinced of such.
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“It’s definitely somebody wanting to clear short futures off of their books,” he said.
The Canadian dollar gained more than two-tenths of cent by midday. The loonie was at 78.23 U.S. cents after closing Tuesday at 78.02.
Approximately 26,900 canola contracts were traded as of 10:41 CST.
Prices in Canadian dollars per metric tonne at 10:41 CST:
Price Change
Canola Mar 698.80 dn 6.50
May 676.30 dn 0.70
Jul 650.90 up 1.10
Nov 553.20 dn 1.60
