By Dave Sims, Commodity News Service Canada
WINNIPEG, June 23 – ICE Canada canola contracts were lower Tuesday morning, taking direction from the US soy complex while also correcting downward from yesterday’s highs.
Malaysian palm oil was slightly lower which contributed to the losses.
Canola’s recent sharp rise has left it vulnerable to profit-taking, according to an analyst.
However, dry conditions throughout Western Canada continue to underpin the market.
The technical bias is still leaning to the upside, with any downward direction likely to be seen as buying opportunities.
Canola is looking expensive right now compared to other vegetable oils on the market, an analyst said.
The Canadian dollar is lower against its US counterpart which made canola more attractive to domestic crushers and exporters.
About 6,000 canola contracts had traded as of 8:35 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:35 CDT:
Price Change
Canola Jul 509.50 dn 4.10
Nov 511.60 dn 4.30
Jan 507.50 dn 2.60
Milling Wheat Jul 212.00 unch
Oct 217.00 unch
Durum Jul 298.00 unch
Oct 298.00 unch
Barley Jul 204.00 unch
Oct 199.00 unch
