By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 21 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Monday, seeing a continuation of last week’s selloff.
“It’s just more of the same,” said a trader adding that speculators holding short positions were “leaning on the canola” in an effort to boost their profits.
Updated supply/demand estimates from Agriculture and Agri-Food Canada raising the projected 2019/20 canola carryout to a record 4.7 million tonnes also weighed on prices, although the trader noted that the official numbers don’t yet account for the adverse harvest and likely lost production.
About 35 per cent of the country’s canola crop is still waiting to be harvested, with producers in Alberta the farthest behind.
A firm tone in Chicago Board of Trade soybeans also provided some support, and the trader said canola was starting to look cheap compared to other oilseeds.
About 22,500 canola contracts traded as of 10:40 CDT, with intermonth spreading a feature.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Price Change
Canola Nov 449.30 dn 4.40
Jan 457.60 dn 4.20
Mar 466.50 dn 4.50
May 474.50 dn 4.10
