By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 10 (MarketsFarm) – The ICE Futures canola market was weaker Monday morning, seeing a profit-taking correction in the old crop July contract to start the week.
After climbing above C$1,000 per tonne on Friday the market was looking overdone to the upside. However, even with the front month down sharply on Monday, the general uptrend remains intact.
Losses in Chicago Board of Trade soyoil futures and strength in the Canadian dollar put some pressure on canola.
While new crop crush margins are still very profitable, old crop margins have moved into negative territory over the past week.
Tight old crop supplies and uncertainty over new crop production, given drought conditions in parts of Western Canada, remained supportive.
About 4,500 canola contracts had traded as of 8:48 CDT.
Prices in Canadian dollars per metric ton at 8:48 CDT:
Canola Jul 988.00 dn 17.90
Nov 738.40 dn 13.30
Jan 733.40 dn 10.10
Mar 717.10 dn 17.10