By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 9 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures turned at midday Monday due to profit-taking, according to a Winnipeg-based trader.
“Canola got overdone. It did what it had to last week; it roared ahead all by itself without any help really from the U.S. side,” the trader explained.
By hitting the C$900 per tonne range. He said canola became too expensive.
“Any move like that puts a lot of profit on the table. So there’s some profit-taking,” he added.
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The trader noted the early canola harvest on the Prairies and thunderstorm in some parts of the region were likely not having much of an effect on the futures market.
However, he said early reports indicated that wheat yields have been better than recently expected. He stressed the Prairie crop was not as bad off as that in North Dakota as some U.S. traders have suggested. He pointed to a decent harvest of about 26 million tonnes versus the 20 million tonnes those U.S. traders are touting.
Declines in soybeans and soyoil at the Chicago Board of Trade, as well as lower European rapeseed and Malaysian palm oil weighed on canola values. There was a little bit of support from gains in Chicago soymeal.
The Canadian dollar was weaker at midday, which tempered losses in canola. The loonie was at 79.49 U.S. cents compared to Friday’s close of 79.68.
Approximately 3,500 canola contracts were traded as of 10:45 CDT.
Prices in Canadian dollars per metric tonne at 10:45 CDT:
Price Change
Canola Nov 881.50 dn 10.30
Jan 867.00 dn 9.80
Mar 853.70 dn 6.80
May 833.90 dn 7.20
