By Glen Hallick, MarketsFarm
WINNIPEG, May 19 (MarketsFarm) – There were sharp declines in Intercontinental Exchange (ICE) canola futures on Wednesday morning, as two weather systems are forecast to bring much needed rain to the Canadian Prairies.
One system moving across central and northern Alberta dropped 15 to 45 millimeters and in one case, five centimeters of snow. Another system, a Colorado Low, is to bring rain to the eastern Prairies starting today.
Significant losses in the Chicago soy complex further weighed on canola values, along with additional pressure from weaker Malaysian palm oil and European rapeseed.
Concerns over tight canola supplies remained in the background, trying to temper further declines.
After surging yesterday, the Canadian dollar was pulling back this morning with the loonie at 82.70 U.S. cents, compared to Tuesday’s close of 82.98.
As of today, ICE reset the daily limit for canola to C$30 per tonne.
About 5,250 canola contracts had traded as of 8:37 CDT.
Prices in Canadian dollars per metric tonne at 8:37 CDT:
Price Change
Canola Jul 929.80 dn 13.30
Nov 705.20 dn 28.50
Jan 703.60 dn 23.40
Mar 694.40 dn 23.40
