By Glen Hallick, MarketsFarm
WINNIPEG, June 5 (MarketsFarm) – ICE Futures canola contracts were steady to slightly lower at midday Wednesday, as planting progress in the United States is reportedly accelerating, according to a Winnipeg-based analyst.
The July contract was down 10 cents at C$453.00 per tonne. The November contract was down 60 cents at C$465.70 per tonne.
The analyst said farmers in the U.S. Midwest and Plains presently have a window of a few days of dry weather to plant.
“Guys will go 24 hours a day. There will be a lot of crop going into the ground in the next day or two,” he commented.
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In turn, the more acres planted, the more commodity prices on the Chicago Board of Trade will come down, he said. As trading carries on through today, he expects canola prices to drop further.
Agriculture Canada’s Drought Monitor reported yesterday that 37 per cent of Western Canada is in a moderate to severe drought. Also, the region has received 60 per cent of its normal precipitation over the last six months. The dry conditions have been supportive of bids.
Approximately 8,500 canola contracts were traded as of 10:34 CDT.
Prices in Canadian dollars per metric tonne at 10:34 CDT:
Price Change
Canola Jul 453.00 dn 0.10
Nov 465.70 dn 0.60
Jan 471.90 dn 0.50
Mar 477.40 dn 0.20
