By Marlo Glass, MarketsFarm
WINNIPEG, Sept. 10 (MarketsFarm) – The ICE Futures canola market was under pressure at midday Tuesday, with prices “quietly grinding lower,” according to one Winnipeg-based trader.
The market observed light trading activity as some traders “remained on the sidelines” ahead of production reports from Statistics Canada and the United States Department of Agriculture. The reports will provide some direction to markets on Thursday.
Technical biases are trending lower, “and that trend is not our friend,” remarked the trader. They said lows breaking below C$437 could result in additional technical selling.
Prices were further hampered by continued harvest development.
“Farmers are between a rock and a hard place, getting ready to bring off new crop, still with a good chuck of old crop,” the trader remarked.
“Buyers continue to wait for the market to come to them.”
A strong Canadian dollar is also keeping pressure on canola values. The dollar held around 76 U.S. cents on Tuesday morning.
A stronger tone observed in the Chicago soy complex failed to provide support for canola prices.
About 6,700 canola contracts traded as of 11:00 CDT.
Prices in Canadian dollars per metric tonne at 11:00 CDT:
Canola Nov 439.10 dn 0.70
Jan 446.80 dn 0.90
Mar 454.00 dn 0.90
May 460.70 dn 0.70