By Glen Hallick, MarketsFarm
WINNIPEG, March 29 (MarketsFarm) – ICE Futures canola contracts were stronger in trading at midday Friday, but a Winnipeg-based trader said there was no clear reason as to why.
The trader said a few of factors could be at play, such as short covering, some form of spread liquidation or a combination of little things.
“It’s really tough to tell who would be that interested in firming up canola, given the circumstances that the market has got in here,” he commented, noting there has been a low volume of trading by midday.
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Over the last couple of days, canola bids have gained C$10 per tonne and the crush margins have dropped by about the same amount, he pointed out.
Yesterday, federal Minister of Public Safety Ralph Goodale commented on the Canada/China dispute. The minister said China has yet to provide any scientific evidence to back up their claim that canola from Richardson International and Viterra was contaminated with hazardous pests.
“We will keep pushing as hard as we can on this vital point,” Goodale stated.
At 11 a.m. CDT the United States Department of Agriculture will release two major reports, the Prospective Planting and Grain Stocks. The reports could have a strong impact on the markets.
About 11,200 canola contracts were traded as of 10:20 CDT.
Prices in Canadian dollars per metric tonne at 10:20 CDT:
Price Change
Canola May 458.70 up 3.50
Jul 466.20 up 3.40
Nov 476.40 up 2.60
Jan 483.90 up 3.60
