By Glen Hallick, MarketsFarm
WINNIPEG, March 7 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower at midsession on Tuesday, being pulled down by weakness in vegetable oils.
There were sharp declines in Chicago soyoil and European rapeseed, with more moderate losses in Malaysian palm oil.
An analyst said comments made today by United States Federal Reserve Chair Jerome Powell about the possibility of forthcoming interest rate increases sent crude oil prices lower. In turn that put pressure on the vegetable oils.
Decreases in Chicago soybeans and soymeal added more pressure on to canola.
While canola crush margins continue to be very strong, they have steadied over the last couple of days.
With a strong surge in the U.S. dollar, the Canadian dollar fell on Tuesday. The loonie retreated to 72.84 U.S. cents, compared to Monday’s close of 73.45.
Approximately 10,000 canola contracts were traded as of 10:31 CST.
Prices in Canadian dollars per metric tonne at 10:31 CST:
Price Change Canola May 816.30 dn 5.50 Jul 812.00 dn 4.80 Nov 785.40 dn 6.10 Jan 790.00 dn 6.20
