ICE Canadian canola futures dropped 1.4 percent on Thursday, their biggest drop in one week, as doubts about economic growth and demand hit commodities. Commodity markets suffered selling onslaught on concerns about US economy and fears of inflated prices.
US grains and soyabeans dove, pulling down canola, and commodities benchmark Reuters-Jefferies CRB index fell about 5 percent. Canola's losses were not as great as soya's fall. Farmer canola selling seen limited and concerns persisting about wet Western Canada conditions.
Statistics Canada reports Friday on March 31 stocks, but not seen as trading factor on Thursday. Trade expects smaller canola stocks. Most active July down $8.00 to $552.50 on volume of 8,686 contracts. Broke below 200-day moving average, likely triggering fund selling, before paring its losses. New-crop November down $8.10 at $548.90 on volume of 3,012.
Eight nearby May contracts delivered on Thursday. July-November spread traded 1,699 times, settling at $3.60 premium July. Chicago July soyabeans last down 2.1 percent at US $13.23 per bushel. July soyaoil last down 2.4 percent to 55.78 US cents per lb.
The Canadian dollar was trading at $0.9678 to the US dollar or US $1.0332 as of 1:16 pm CDT (1816 GMT), down from Wednesday's North American session finish at $0.9585 to the US dollar, or US $1.0433. NYMEX crude oil futures settled down 8.6 percent at US $99.80 per barrel. Saskatchewan has planted 1 percent of crops, compared to 2 percent a year ago. Red River crests in Winnipeg, Manitoba. Coming up: Statistics Canada March 31 stocks report Friday.
Comments
Comments are closed for this article.