By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 7 (MarketsFarm) – The ICE Futures canola market was weaker at midday Thursday, seeing a modest correction after hitting fresh contract highs earlier in the week.
Canola was said to be looking overbought from a chart standpoint, accounting for some of the profit-taking on Thursday.
Losses in the Chicago Board of Trade soy complex contributed to the declines, as a resolution to a strike by grain inspectors in Argentina accounted for some of the selling pressure in soybeans.
However, the underlying fundamentals remain supportive for canola, given expectations for tightening supplies and the need to ration demand going forward.
About 21,700 canola contracts traded as of 10:40 CST.
Prices in Canadian dollars per metric tonne at 10:40 CST:
Canola Mar 651.40 dn 0.40
May 642.30 dn 0.20
Jul 628.90 dn 1.50
Nov 543.00 dn 3.40