By Glen Hallick, MarketsFarm
WINNIPEG, March 10 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were falling back by double-digits at midsession on Friday, as the sell-off in the oilseed markets continued.
“The bears are coming out in full force, and this is snowballing to the downside,” a trader stated, noting there’s a good amount of fund selling and the technicals are weak.
“Producers should be selling and not sitting on their hands,” he warned, stressing there will very likely be additional weakness in canola for the time being.
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“We’ve seen these breaks over the past couple of years. They [drop] in C$100 a tonne moves,” the trader added.
Along with declines in the Chicago soy complex and European rapeseed, there were major losses in Malaysian palm oil. This was despite modest upticks in global crude oil prices spilling over into the vegetable oils.
The Canadian Grain Commission reported producer deliveries of canola were up about 47 per cent at 432,100 tonnes for the week ended March 5. Canola exports rose more than 15 per cent on the week at 224,300 tonnes, but domestic usage was down almost the same percentage at 168,700 tonnes.
The Canadian dollar slightly higher on Friday with the loonie at 72.61 U.S. cents, compared to Thursday’s close of 72.52.
Approximately 27,900 canola contracts were traded as of 10:43 CST.
Prices in Canadian dollars per metric tonne at 10:43 CST:
Price Change Canola May 771.60 dn 20.70 Jul 768.60 dn 20.00 Nov 748.30 dn 15.00 Jan 752.90 dn 15.20
