By Glen Hallick, MarketsFarm
WINNIPEG, June 18 (MarketsFarm) – ICE Futures canola contracts were steady to higher for the new crop months at midday Thursday, while the July contract was down in choppy activity.
“[Traders] moved that July spread considerably over the last little while. There are traders on both sides of the spread, so the ones getting out are pushing the spreads one way. Eventually, that creates an opportunity for traders on the other side to come in and push the spread the other way,” a Winnipeg-based trader explained, noting such movement is very typical of the spread in June.
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Also, he said canola seems to meeting resistance, but doesn’t want to come down.
As the markets and farmers wait for next crop area report from Statistics Canada, the trader said “we could end up being a bit lower than earlier projections.” The federal agency is scheduled to release its report on June 29.
Rain has been forecast for the Prairies, which the trader said will help most of the region as it contends with dry conditions.
“It’s still tough though to estimate yields at this point,” he said.
The Canadian dollar was slightly lower at 73.63 U.S cents compared to Wednesday’s close of 73.77.
Approximately 10,900 canola contracts were traded as of 10:43 CDT.
Prices in Canadian dollars per metric tonne at 10:43 CDT:
Price Change
Canola Jul 472.40 dn 0.90
Jan 481.70 up 1.00
Mar 486.40 up 0.30
