By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 18 – (MarketsFarm) – ICE Futures canola contracts were weaker at midday Wednesday, as a general ‘risk off’ sentiment in the global financial and commodity markets weighed on values.
Chicago Board of Trade soyoil futures were down sharply on the day, cutting into canola crush margins. European rapeseed and Malaysian palm oil futures were also weaker.
Uncertainty over new crop production provided some underlying support, as ongoing rains continue to delay seeding in the eastern Prairies while the western Prairies remain in need of moisture.
However, a trader said that uncertainty was keeping some end user demand on the sidelines, as they wait for a clearer picture of seeded area. He added that the improved moisture conditions in Manitoba and eastern Saskatchewan will be beneficial for the canola crop in the long run.
About 8,100 canola contracts traded as of 10:43 CDT.
Prices in Canadian dollars per metric tonne at 10:43 CDT:
Price Change
Canola Jul 1,151.10 dn 38.90
Nov 1,062.30 dn 32.80
Jan 1,067.00 dn 32.60
Mar 1,069.30 dn 31.70
