By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 23 (MarketsFarm) – ICE Futures canola contracts were lower at midday Thursday, following declines in Chicago soyoil.
A Winnipeg-based trader noted that soyoil has shifted 40 to 50 points either way over the last several days, which he said was “pretty bizarre.” The expectation had been that soyoil had found some support to stabilize it, but that didn’t materialize.
Given the fluctuations there have been in soyoil over the last few weeks, the trader said canola has been held back.
“There’s no point in chasing after [soyoil] if it’s going to go the other way the next day,” he commented.
The trader said declines in the Canadian dollar have been helpful for canola, but the loonie’s effects are often felt a few days later.
So far today, the Canadian dollar was slightly lower at 76.06 U.S. cents, after closing Wednesday at 76.24.
Approximately 11,700 canola contracts were traded as of 10:35 CST.
Prices in Canadian dollars per metric tonne at 10:35 CST:
Price Change
Canola Mar 474.60 dn 3.30
May 483.60 dn 3.20
Jul 488.70 dn 2.70
Nov 492.70 dn 2.30
