By Glen Hallick, MarketsFarm
WINNIPEG, May 23 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Thursday, with little to support prices according to a Winnipeg-based trader.
The July contract was down C$1.80 at C$444.10 per tonne. The November contract lost C$1.10 at C$457.50 per tonne.
“There’s nothing to really push it up. It’s down and drifting,” the trader said.
Ahead of today’s announcement by United States Secretary of Agriculture Sonny Perdue of an aid package for U.S. farmers, soybeans on the Chicago Board of Trade were already down, which weighed on canola values.
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The trader was critical of the U.S. aid package.
“It seems counter-intuitive that you would encourage bean production when already nobody wants them. Their biggest customer (China) doesn’t want them. It creates more of a glut and that will have a drag effect on canola,” he stated.
The trader noted one supportive factor for canola was the weather over the next couple of months.
“This is the time of year when we do enter often into a seasonal weather grid in price increase, coming into the end of June, the beginning of July,” he explained.
Approximately 7,700 canola contracts were traded as of 10:31 CDT.
Prices in Canadian dollars per metric tonne at 10:31 CDT:
Price Change
Canola Jul 444.10 dn 1.80
Nov 457.50 dn 1.10
Jan 462.90 dn 1.00
Mar 468.40 dn 1.00
