By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 2 (MarketsFarm) – ICE Futures canola contracts were higher at midday Friday, as they bounce back from yesterday’s declines, according to a Winnipeg-based trader.
As well with the long weekend, he said prices will be up as traders, especially “the little guy”, won’t be able to resume trading until Monday evening.
Another factor the trader cited was who’s short and who’s long.
“Specs are a good size short in this market, but the farmer is long in the field and long in the bin,” he stated.
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Adding to that will be the 2019 crop coming in. Although production estimates were lowered to 19.0 million tonnes from last year’s 20.3 million, there will still be a lot of canola this year.
“Without our biggest buyer around, we’re going to struggle to get all of the demand we need to clean up things,” the trader commented.
Last week, MarketsFarm issued its estimate for this year’s canola crop at 17.85 million tonnes, having taken into account the slow start this spring and the threat of frost coming soon.
Approximately 8,200 canola contracts were traded as of 10:56 CDT.
Prices in Canadian dollars per metric tonne at 10:56 CDT:
Price Change
Canola Nov 443.10 up 1.10
Jan 451.30 up 1.50
Mar 458.30 up 1.60
May 464.50 up 1.60