WINNIPEG, Manitoba--The ICE Futures canola market was down midday Tuesday despite gains in crude oil prices.
One analyst believes that a lack of Chinese demand due to a rising number of Covid-19 infections, as well as a relatively strong Canadian dollar may be keeping canola prices down, but the behavior of the trade may be the biggest issue.
"The funds are short. On down days, they sell more and right now, there is nothing stopping them on the downside because the demand isn't here," the analyst said. "Thank goodness there isn't much in the way of farmer selling, because I think farmers are adequately cash-sufficient here, probably almost into March."
Chicago soyoil was up, as well as Malaysian palm oil. However, European rapeseed was down. Crude oil prices regained their positive momentum after a correction on Monday.
The Canadian dollar was up one-tenth of a U.S. cent compared with Monday's close. Statistics Canada reported Tuesday that the annual inflation rate declined to 6.3% in December compared with 6.8% in November.
Nearly 16,150 canola contracts were traded as of 11:16 a.m. ET.
Canola Price Change
Mar 838.00 dn 2.90
May 834.80 dn 4.80
Jul 836.50 dn 4.70
Nov 817.50 dn 4.60 Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
01-17-23 1154ET
