WINNIPEG--Intercontinental Exchange canola futures were lower at midday Wednesday, pressured by declines in edible oils, according to a trader.
Chicago soyoil was down sharply with significant pullbacks in Malaysian palm oil and European rapeseed. Declines in global crude-oil prices exacerbated the losses in edible oils.
However, the trader stressed that canola remained "ludicrously overvalued" with only the specs trading in the nearby January contract. He noted that sooner or later canola will break, with declines very likely pushing the daily limit.
A weaker Canadian dollar was lending support to canola, he said. The loonie was at 77.48 U.S. cents compared to Tuesday's close of 77.85.
Approximately 8,450 canola contracts were traded as of 11:26 a.m. EST.
Prices in Canadian dollars per metric ton:
Price Change
Canola
Jan 994.20 dn 6.30
Mar 971.50 dn 7.70
May 934.50 dn 7.90
Jul 881.80 dn 9.40
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
12-15-21 1201ET
