ICE weekly outlook: Canola gains strength at midweek

Published 2020년 4월 22일

Tridge summary

Canola contracts experienced a rebound in the middle of the week after showing weakness due to bearish external markets. The May canola contract, which had lost over $1 on Tuesday, saw some of its losses recovered by Wednesday. The weakness of canola was also linked to soyoil losses, which were largely reversed by midweek. Factors such as the unprecedented dip in West Texas Intermediate (WTI) crude oil futures and the relative weakness of the Canadian dollar provided support to canola values.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

MarketsFarm — After showing considerable weakness in prior trading sessions, canola contracts tried to regain some ground at midweek. Ken Ball of P.I. Financial in Winnipeg said canola was oversold due to bearish sentiments from outside markets earlier in the week, but prices were steadily bouncing back. Nearby ICE Futures canola was down Monday by about $3, at $453.10 per tonne. Similarly, on Tuesday, the May canola contract lost over $1, but those losses were partially erased Wednesday with the May contract closing at $453.70. Canola was also hampered by soyoil losses earlier in the week, which were largely reversed at midweek. Canola prices held strength relative to the comparable vegetable oil, Ball said. Because canola didn’t fall as far, it subsequently didn’t rally as high either. Bearish influences from outside markets were a driving factor regarding the fluctuation in canola prices. Earlier in the week, West Texas Intermediate (WTI) crude oil futures took an ...

Source: Ag Canada