By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures remained lower late Wednesday morning, leaving at least one trader wondering why.
“It defies logic,” the trader said.
He suggested an influx of canola being hauled to Prairies elevators could be one reason for today’s losses.
“There must be more canola out there than what we think there is,” he added.
As for the new crop, the trader said it looks to be as good as it’s ever been.
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An analyst estimated the canola crop to be a little short of 18.60 million tonnes, down nearly 550,000 tonnes from last year. He projected Prairie canola yields at 38.6 bushels per acre but warned there are large parts of the region that are likely to have yields of 20 bu./ac. or less due to dry conditions.
In the outside markets, support for canola was coming from good gains in the Chicago soy complex and Malaysian palm oil. However, there were losses in European rapeseed and in crude oil that weighed on values.
The Canadian dollar edged higher at mid-session Wednesday, with the loonie rising to 73.02 U.S. cents compared to Tuesday’s close of 72.94.
Approximately 18,650 canola contracts were traded as of 10:46 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 682.10 dn 8.70 Jan 690.60 dn 8.30 Mar 698.30 dn 6.80 May 704.60 dn 5.40
- With files from Sean Pratt, Glacier FarmMedia
To access the latest futures prices, go to https://www.producer.com/markets-futures-prices/
