By Glen Hallick, MarketsFarm
WINNIPEG, May 2 (MarketsFarm) – ICE Futures canola contracts were down trading in early trade Thursday morning, pushing to new contract lows.
The July contract was down C$2.20 at C$434.20 per tonne. The November contract was down C$2.30 at C$448.20 per tonne.
The federal government’s changes to the Advance Payments Program appears to have a negligible effect on bids. On Wednesday, the feds announced the upper limit farmers can borrow was boosted from C$400,000 to C$1 million, with up to the first C$500,000 interest-free for canola growers. For all other commodities, the interest-free limit remains at C$100,000.
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Weighing on values Thursday morning have been the Canada/China dispute and the technical bias having shifted to the downside. Also, the anticipation of soybean acres in the United States increasing and the large South American soybean harvest.
Tempering losses were fewer canola acres being planted in Canada this year, along with the cold and wet weather having delayed planting. Also, the market has been looking for a bounce after continuing losses.
The Canadian dollar was down Thursday morning at 74.28 U.S. cents.
About 3,700 canola contracts had traded as of 8:35 CDT.
Prices in Canadian dollars per metric ton at 8:35 CDT:
Price Change
Canola Jul 434.20 dn 2.20
Nov 448.20 dn 2.30
Jan 456.30 dn 1.20
Mar 463.10 dn 0.70
