By Glen Hallick, MarketsFarm
WINNIPEG, March 18 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures weaker at midday Thursday as profit-taking continued to pull down values for a second day.
“There’s too much spec money in these markets at times. Eventually it’s going to flush out a little bit. “The big question is – will they start flushing out aggressively?” commented a Winnipeg-based trader.
He added that canola is overdone, especially since it has dropped more than the Chicago soy complex, particularly soyoil. Also, declines in Chicago soyoil were much larger in the new crop months than the old crop.
Read Also
North American Grain/Oilseed Review: Canola, CBOT grains down
Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange started the week lower. Despite easing away from heavier…
“As long as beanoil doesn’t break, canola is probably going to rebound from this. The unknown is the funds starting to liquidate from beanoil as they have a mountain of money on the table there,” the trader said, noting the soymeal/soyoil spreads are “gargantuan.”
For the time, the funds are taking some profits from soyoil, “but are not abandoning ship,” he said.
The Canadian dollar was higher, with the loonie at 80.42 U.S. cents compared to Wednesday’s close of 80.22.
Approximately 16,800 canola contracts were traded as of 10:53 CDT.
Prices in Canadian dollars per metric tonne at 10:53 CDT:
Price Change
Canola May 764.90 dn 14.40
Jul 715.30 dn 16.30
Nov 610.40 dn 14.10
Jan 616.00 dn 9.30
