By Glen Hallick, MarketsFarm
WINNIPEG, May 24 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Friday, as the markets are choppy and nervous, according to a Winnipeg-based trader.
At midday, the July contract was up C$2.90 at C$444.70 per tonne. The November contract was up C$3.40 at C$455.80 per tonne.
“We’re going to be up one day and down the next,” he said, noting that June is the transition from unsettled spring weather to summer-like weather.
“That may be not be very good for canola if we don’t get rain,” he added.
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Dryness throughout much of Alberta and Saskatchewan has become a cause for concern, he said.
Also, he explained the price of a tonne of canola can only go so far on its own, as it’s limited by the product values.
“If the oil and meal are staying relatively weak, even with some serious weather problems, canola will struggle sometimes to do very much,” he said.
With May 27 being Memorial Day in the United States, the commodity and stock markets will be closed. However, the canola market will be open.
Approximately 5,500 canola contracts were traded as of 10:29 CDT.
Prices in Canadian dollars per metric tonne at 10:29 CDT:
Price Change
Canola Jul 444.70 up 2.90
Nov 458.40 up 3.40
Jan 463.70 up 3.30
Mar 468.90 up 3.20
