ICE canola down but over-priced

By Ashley Robinson, Commodity News Service Canada
WINNIPEG, MB, Sep. 17, 2018 (CNS Canada) – ICE Futures
Canada canola contracts were weaker at midday Monday, taking
direction from United States futures and a stronger Canadian
dollar.
Chicago Board of Trade soybean, oil and meal contracts were
all lower also.
One Winnipeg-based trader said that canola is
“outstandingly” high priced relative to soybeans. He added that
no one is quite sure why it is so high, but there is speculation
that it could be due to the wet, cold conditions Western Canada
is experiencing, demand or speculators playing long canola
spreads and short soy spreads.
“With the weather out there, the market is nervous about
how big this canola crop really is and justifiably nervous. I
don’t know of anybody who’s very confident putting a number on
the canola crop,” he said.
About 3,600 canola contracts had traded as of 10:30 CDT.

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