By Glen Hallick, MarketsFarm
WINNIPEG, May 10 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Friday ahead of any possible volatility that could come later in trading, according to a Winnipeg-based trader.
The United States Department of Agriculture releases its World Agriculture Supply and Demand Estimates at 11 CDT today.
“They like to use these reports as a trigger to do some things. It could get interesting,” the trader said of the markets.
Ontop of that are U.S./China trade negotiations, which continue Friday under the shadow of President Donald Trump having hiked tariffs on imports from China earlier today. So far, the commodities market has not reacted with any great swings.
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Also, the trader stressed canola, relative to soybeans, is still too expensive and that is poised to hurt its demand.
“That’s not going to be a good thing for the long run. For the short term it’s nice for farmers with prices propped up by the speculators,” he said.
Total canola exports for the 2018/19 crop year as of May 5 amounted to 7.18 million tonnes, according to the Canadian Grain Commission. That’s down from 7.99 million tonnes from this time last year.
Approximately 3,700 canola contracts were traded as of 10:27 CDT.
Prices in Canadian dollars per metric tonne at 10:27 CDT:
Price Change
Canola Jul 436.70 dn 0.80
Nov 448.80 dn 1.50
Jan 455.60 dn 1.10
Mar 461.50 dn 1.20
