By Phil Franz-Warkentin, MarketsFarm
WINNIPEG–The ICE Futures canola market was mixed Monday morning, retreating from overnight gains as profit-taking and farmer selling came forward at the highs.
Overnight gains in Chicago Board of Trade soybeans had provided some spillover support and canola managed to set fresh contract highs. However, soybeans turned lower and canola backed away as well.
While canola was looking overbought from a chart standpoint and due for a correction, the underlying fundamentals remain supportive.
Early weakness in the Canadian dollar, which had lost roughly three-quarters of a cent relative to its United States counterpart, also helped temper the declines.
About 8,900 canola contracts had traded as of 8:52 CST.
Prices in Canadian dollars per metric ton at 8:52 CST:
Canola Mar 666.00 up 0.80
May 653.40 dn 0.10
Jul 639.50 dn 0.40
Nov 541.70 dn 3.50