By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 8 (MarketsFarm) – The ICE Futures canola market was down sharply at midday Tuesday, as prices backed away from nearby highs.
Fund long liquidation was a feature, with speculators booking profits on their bullish bets, according to a trader. He added that losses in the Chicago Board of Trade soy complex provided the catalyst for the selloff in canola.
Ongoing strength in the Canadian dollar also weighed on values, as the currency hovered above 78 United States cents.
However, the underlying fundamentals remain supportive for canola, said the trader. He expected the correction would be short-lived, with the general uptrend still in place as the market will need to work to ration demand going forward.
About 31,000 canola contracts traded as of 10:32 CST, with intermonth spreading a feature.
Prices in Canadian dollars per metric tonne at 10:32 CST:
Price Change
Canola Jan 583.20 dn 8.20
Mar 579.00 dn 6.70
May 574.40 dn 6.50
Jul 568.00 dn 6.20
