By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 6 (MarketsFarm) – ICE Futures canola contracts were lower at midday Friday and could drop further, according to a Winnipeg-based trader.
He said canola has actually been holding up quite well given the pressure it’s been under yesterday and today, with product values dropping C$12 to C$13 while canola declined by less than half that.
The Canadian dollar has also weighed on values as the loonie has been approaching 76.00 U.S. cents on Friday. Also, pressure was coming from the Chicago soy complex.
As for grain stocks report issued by Statistics Canada today, the trader said it’s had little effect on prices. Market expectations were for stocks of around 3.8 million to 3.9 million tonnes and the agency’s report pegged total canola stocks at 3.873 million tonnes.
Approximately 9,400 canola contracts were traded as of 10:39 CDT.
Prices in Canadian dollars per metric tonne at 10:39 CDT:
Price Change
Canola Nov 440.30 dn 5.00
Jan 448.20 dn 5.00
Mar 455.10 dn 4.90
May 461.40 dn 4.80
