By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 24 (MarketsFarm) – The ICE Futures canola market was mixed at midday Wednesday, with losses in the front months and a firmer tone in the more deferred positions.
Speculative long liquidation accounted for the selling pressure in the nearby months, with fund traders holding large long positions booking profits, according to a trader.
Strength in the Canadian dollar, which hit three-year highs relative to its United States counterpart, also put some pressure on canola.
However, a rally in Chicago Board of Trade soyoil provided some spillover support for canola and new crop months held onto gains.
Tight old crop supplies and the need to ration demand going forward remained a supportive influence as well, although end-user demand has started to back away at current price levels.
About 31,000 canola contracts traded as of 10:50 CST.
Prices in Canadian dollars per metric tonne at 10:50 CST:
Price Change
Canola Mar 811.00 dn 19.70
May 773.20 dn 2.60
Jul 739.50 up 1.10
Nov 612.00 up 6.00
