By Glen Hallick, MarketsFarm
WINNIPEG, April 22 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Monday, as the path of least resistance continues to grind lower, said a Winnipeg-based trader.
The May contract was down C$4.10 at C$445.00 per tonne, while the July contract lost C$3.90 at C$453.30 per tonne.
“The commodity fund roll is complete as far as the May-July goes,” he said, noting the spec funds have been exiting May as well.
The spread has been a major feature on Monday so far, accounting for the great majority of May trading, he said.
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Statistics Canada is set to release its 2019/20 Principal Field Crop Acreage report on Wednesday. Expectations have been for fewer canola acres in 2019, with market projections from 19.5 million acres to 22.4 million acres. In 2018, Canadian farmers planted 22.8 million acres of canola.
The trader commented last week’s exports were poor at only 150,000 tonnes, as the loss of China continues to makes its impact. In turn, export amounts have raised concerns about the amount in old crop ending stocks.
The Canadian dollar was up Monday, at about 74.86 U.S. cents.
About 15,700 canola contracts were traded as of 10:21 CDT.
Prices in Canadian dollars per metric tonne at 10:21 CDT:
Price Change
Canola May 445.00 dn 4.10
Jul 453.30 dn 3.90
Nov 465.20 dn 3.60
Jan 472.20 dn 3.20
