By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 1 (MarketsFarm) – ICE Futures canola contracts were trading either side of steady at midday Thursday, getting support from a lower Canadian dollar and from Chicago soyoil, said a Winnipeg-based analyst.
The loonie fell under 76 U.S. cents to 75.69, which has made canola more attractive for exports.
Soyoil at the Chicago Board of Trade was up by about a quarter of a cent per pound, while pressure came from September beans being down by more than five cents a bushel. Also, soymeal had lost US$3.00 per hundredweight for September.
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The analyst noted volumes have increased slightly over the last week, averaging 10,000 to 11,000 trades per day.
“There’s no significant spreading going on right now. There are spreads, lots of them, but we’re not rolling out of November yet,” he commented.
The Manitoba Co-operator reported the fall rye and winter wheat harvest has begun in the province. The analyst believed the spring wheat harvest was about a week away from starting.
However, in Alberta there were numerous fields in which the canola was still blooming. “That is late,” stated the analyst.
This has raised possibility of frost damage by the second of August, he added.
As for the U.S. markets, he emphasized the lack of progress in U.S./China trade talks has had a negative effect on prices.
Approximately 5,600 canola contracts were traded as of 10:29 CDT.
Prices in Canadian dollars per metric tonne at 10:29 CDT:
Price Change
Canola Nov 443.40 dn 0.10
Jan 450.80 dn 0.30
Mar 457.80 dn 0.40
May 464.50 up 0.60
