Glacier FarmMedia | MarketsFarm – The ICE Futures canola market fell sharply lower during the week ended Aug. 14, hitting its lowest levels since 2020 as rising soybean production estimates out of the United States weighed on values.
The November contract hit a low of C$565.50 per tonne during the week, before oversold sentiment came forward and profit-taking helped take values off that chart support.
If prices drop below the weekly low “that opens the door for (a move to) the 2018 to 2020 price ranges… which is not that long ago,” said Jamie Wilton, Commodity Futures Specialist with RJ O’Brien in Winnipeg.
Read Also
U.S. grains: Soy hits 17-month high, corn to four-month top as trade braces for U.S. data
Chicago Board of Trade soybean futures rose on Thursday to their highest in nearly 17 months as traders awaited a U.S. government crop report that was expected to lower yield estimates, while also bracing for the resumption of export data to give clues on Chinese buying.
The nearby canola futures held within a relatively sideways trading range during that timeframe of about C$430 to C$540 per tonne, and Wilton said it was still much too early to say that the lows were in for canola at current price levels.
He added that pressure was coming from the favourable state of the U.S. soybeans, with the bottom of the market often found just ahead of harvest. Looking forward, Wilton expected the market would be paying close attention to how yields come in at harvest time to see how the reality matches up with the predictions.
