By Glen Hallick, MarketsFarm
WINNIPEG, April 26 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Friday, with the July contract down more than the other contracts because of spreading, according to a Winnipeg-based trader.
“Rolling out of May into July. I’ve been doing a lot of that this morning myself,” the trader said.
The May contract slipped 80 cents at C$441.60 per tonne, and the July contract was down C$2.20 at C$449.10 per tonne.
The trader commented that soybeans on the Chicago Board of Trade were also down at midday Friday, which weighed on canola values.
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China’s ban on canola imports from Canada, a huge South American soybean crop and farmers in the United States switching from corn to planting soybeans also weighed on values.
Providing support was the Statistics Canada acreage report projecting fewer canola acres in 2019.
The Canadian dollar was slightly up at about 74.24 U.S. cents.
As spring planting increases, the trader expects basis levels to improve. However, basis levels and prices will likely decrease after planting as “people want to move the rest of their canola,” he said.
About 18,900 canola contracts were traded as of 10:26 CDT.
Prices in Canadian dollars per metric tonne at 10:26 CDT:
Price Change
Canola May 441.40 dn 1.00
Jul 448.80 dn 2.50
Nov 462.50 dn 1.20
Jan 469.70 dn 0.80
