WINNIPEG--Intercontinental Exchange canola futures were weaker at midday Thursday, especially in the old-crop contracts.
A trader said that spec money was "flushing out" of soybeans on ideas that dry conditions in South America could improve with rain in the forecast for Argentina and southern Brazil. The spillover was bringing down canola.
The trader also noted that if canola were to bust through its lows there could be a "flash crash" as moves in the oilseed "can be self-fueling." However, he said he doubts there would be "a stampede to the exit."
Pressure on canola was coming from sharp declines in the Chicago soy complex and in European rapeseed. Losses in Malaysian palm oil were much more moderate. Global crude-oil prices were also taking a small step back, placing some pressure on edible oils.
A slightly higher Canadian dollar also weighed on canola. The loonie was sitting at 80.07 U.S. cents compared to Wednesday's close of 79.94.
Approximately 20,800 canola contracts were traded as of 11:36 a.m. EST.
Prices in Canadian dollars per metric ton:
Price Change
Canola
Mar 998.00 dn 16.70
May 979.40 dn 12.40
Jul 943.40 dn 7.70
Nov 798.00 dn 2.00
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
01-13-22 1209ET
