Glacier FarmMedia — The ICE Futures canola market was weaker at midday Thursday, hitting fresh two-week lows as losses in Chicago soyoil spilled over to weigh on values.
Speculative funds were likely behind much of the selling as they adjusted positions, said a trader, adding that the relatively small open interest in the canola market compared to the daily volumes was leading to large day-to-day price swings with a move off the session lows likely before the close.
Tightening old crop supplies and wide crush margins remained supportive from a fundamental standpoint.
Mixed Prairie growing conditions kept some weather premiums in the market, with dryness in some areas countered by relatively favourable weather elsewhere.
An estimated 22,700 canola contracts traded as of 10:54 CDT.
Prices in Canadian dollars per metric tonne at 10:54 CDT:
Canola Nov 684.40 dn 12.20
Jan 695.80 dn 11.70
Mar 702.40 dn 12.70
May 709.90 dn 11.40