ICE Canola Dropping Sharply Friday

WINNIPEG--The ICE Futures canola market was weaker midday Friday, posting large losses as speculators liquidated long positions ahead of the weekend.

"I think canola is being ambushed," said a Winnipeg-based trader on the speculative money flows in the market. He said the relatively thin volumes in the canola market were allowing small amounts of money to trigger some panic long liquidation.

A move below chart support in the nearby November contract was bearish from a chart-standpoint, contributing to the declines.

Losses in the Chicago Board of Trade soy complex and early strength in the Canadian dollar also weighed on values.

However, persistent drought concerns across the Prairies remained supportive, with the nearby forecasts calling for continued heat and dryness.

Positioning ahead of the Terry Fox Day long weekend could lead to some choppiness during the session. The canola market will be closed Monday, while markets in the U.S. will trade their usual hours.

About 15,200 canola contracts traded as of 12:11 p.m. ET.

Prices in Canadian dollars per metric tonne at 12:11 p.m. ET:

                          Price      Change
Canola            Nov     838.50    dn 39.90
                  Jan     829.60    dn 35.60
                  Mar     821.80    dn 29.00
                  May     803.10    dn 28.30

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


  (END) Dow Jones Newswires
  07-30-21 1242ET
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