By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 31 (MarketsFarm) – The ICE Futures canola market was stronger at midday Friday, as speculators continued to cover their large short positions.
A slight decline in visible supplies in the commercial handling system in the latest Canadian Grain Commission report was also supportive, according to a trader. However, he added that exports were disappointing, with the 85,100 tonnes moved during the week coming in well below the 275,200 tonnes seen the previous week.
Weakness in the Canadian dollar and dryness concerns in parts of the Prairies were somewhat supportive.
However, large old crop supplies and the ongoing trade dispute with China tempered the upside. Losses in Chicago Board of Trade soybeans and renewed concerns over global trade were also bearish, with United States President Donald Trump now threatening to place tariffs on Mexican imports.
About 10,300 canola contracts traded as of 10:50 CDT.
Prices in Canadian dollars per metric tonne at 10:50 CDT:
Price Change
Canola Jul 459.90 up 0.80
Nov 473.60 up 0.60
Jan 478.70 up 1.10
Mar 483.30 up 2.00
