By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 17 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Wednesday, with much of the activity linked to participants rolling their positions out of the nearby May contract and into July.
The May/July spread traded from C$7.10 to C$7.70 under, accounting for over three-quarters of the contracts traded by midday.
Losses in Chicago Board of Trade soybeans and a firmer tone in the Canadian dollar accounted for some of the selling pressure in the outright market, according to participants.
Ongoing trade tensions with China also continued to weigh on values.
Statistics Canada releases its first acreage estimates of the year on Wednesday, April 24. Traders generally expect seeded canola area will be down from the 22.8 million acres seeded in 2018, but the extent of the revision remains to be seen.
About 19,000 canola contracts traded as of 10:21 CDT, with the May/July spread linked to about 15,000 of the contracts traded.
Prices in Canadian dollars per metric tonne at 10:21 CDT:
Price Change
Canola May 451.70 dn 2.80
Jul 458.90 dn 3.30
Nov 470.70 dn 3.20
Jan 477.50 dn 3.10
