MarketsFarm — After showing considerable weakness in prior trading sessions, canola contracts tried to regain some ground at midweek.
Ken Ball of P.I. Financial in Winnipeg said canola was oversold due to bearish sentiments from outside markets earlier in the week, but prices were steadily bouncing back.
Nearby ICE Futures canola was down Monday by about $3, at $453.10 per tonne. Similarly, on Tuesday, the May canola contract lost over $1, but those losses were partially erased Wednesday with the May contract closing at $453.70.
Canola was also hampered by soyoil losses earlier in the week, which were largely reversed at midweek.
Canola prices held strength relative to the comparable vegetable oil, Ball said. Because canola didn’t fall as far, it subsequently didn’t rally as high either.
Bearish influences from outside markets were a driving factor regarding the fluctuation in canola prices. Earlier in the week, West Texas Intermediate (WTI) crude oil futures took an unprecedented turn into the red for the first time in history. Crude oil futures have improved slightly but still remain around historic lows.
Relative weakness to the Canadian dollar has provided a bit of support to canola values. The dollar remained under 71 U.S. cents at midweek.
— Marlo Glass reports for MarketsFarm from Winnipeg.