By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 24 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Friday, continuing the downward trend with Chicago soyoil, according to a Winnipeg-based trader.
“It’s due to the money flow as funds ramped up a big long position and took [soyoil] up to 35 cents per pound ,” he said of the price in late December.
Since then, the money flow has shifted to taking profits and liquidating the long position.
The trader commented that crude oil prices, which are down today, have been weighing on vegetable oil values as well.
Other reports noted there has been little Chinese demand for not only soyoil, but also palm oil. The latter has also dropped recently because of India’s ban on palm oil imports from Malaysia.
So far today, the Canadian dollar was steady at 76.05 U.S. cents, after closing Thursday at 76.09.
Approximately 18,600 canola contracts were traded as of 10:52 CST.
Prices in Canadian dollars per metric tonne at 10:52 CST:
Canola Mar 469.00 dn 4.10
May 477.90 dn 4.10
Jul 484.20 dn 2.90
Nov 489.80 dn 1.80
Futures Prices as of January 24, 2020
Prices are in Canadian dollars per metric ton