Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 

ICE Canola Midday : Profit-Taking Most Likely Behind Pull Back

10/21/2021 | 10:11am EST

WINNIPEG--Intercontinental Exchange canola futures were taking a step back at midday Thursday most likely due to some profit-taking, according to a trader. For several days canola was swinging higher along with gains in other edible oils.

"We got a sudden turn in the undertones, but nothing is collapsing by any means," the trader commented.

"When you got a tight supply situation, the futures market becomes massively slanted in favor of the longs. The shorts lose the ability to make significant deliveries," he added.

The trader said canola remains sturdy and will need to remain high through the coming winter.

As for the October supply and demand report from Agriculture and Agri-Food Canada, or AAFC, the trader was skeptical of the numbers. That being AAFC relies on data from Statistics Canada, which he suggested the markets have little confidence in the latter's methodology.

Nevertheless, the trader said this year's production is probably very close to the 12.8 million tonnes AAFC cited, but he predicted exports will lower than 6.5 million tonnes forecast and domestic usage will exceed the projected 7.7 million tonnes.

Although Australia's canola exports are to hit a record 4.5 million tonnes, the trader suggested that extra 1.5 million tonnes over last year won't have much of an effect on the market.

The Canadian dollar was slightly lower with the loonie at 81.02 U.S. cents compared with Wednesday's close of 81.11.

About 17,100 canola contracts were traded as of 11:37 a.m. ET.

Prices in Canadian dollars per metric tonne at 11:37 a.m. ET:

     Price  Change 
 
Canola 
 Nov 939.10 dn 10.20 
 Jan 929.60 dn 15.00 
 Mar 913.30 dn 14.00 
 May 888.30 dn 11.60 

Source: Commodity News Service Canada, news@marketsfarm.com

(END) Dow Jones Newswires

10-21-21 1211ET

Latest news "Commodities"
05:27aOil Shares Gain as Crude Prices Rise Ahead of OPEC+
DJ
05:12aOPEC+ talks likely to consider pausing oil output hike as an option, source says
RE
04:41aZambia sees copper production down at 800,000 tonnes in 2021
RE
03:55aGlobal palm oil supply won't reach pre-pandemic levels next yr - Analyst Fry
RE
03:35aMiner Tharisa annual profit more than doubles on strong platinum prices
RE
03:24aIndonesia's palm oil exports, production seen up next year - GAPKI
RE
03:23aOil rises as investors focus on OPEC+ decision amid growing Omicron fears
RE
03:16aOPEC+ weighs output policy as Omicron fears hammer prices
RE
01:38aTop buyer India to favour Malaysian palm oil as Indonesian prices rise -assoc
RE
01:33aREUTERS NEXT-Ride-hailing firm Ola plans IPO in first half of 2022, readies 'super app'
RE
Latest news "Commodities"