By Glen Hallick, MarketsFarm
WINNIPEG, May 9 (MarketsFarm) – ICE Futures canola contracts were weaker at midday Thursday, as soybeans on the Chicago Board of Trade (CBOT) are well down.
However, a Winnipeg-based trader stated that canola remains too expensive.
“We need canola to get cheap and stay cheap so we can move some canola. Right now the market is not that unfortunately, it’s getting more expensive by the day,” he said.
Despite canola bids coming down over the last few months, the problem is CBOT soybeans have dropped further, creating an increased gap between the two. The trader said canola has been approximately C$20 per tonne more than soybeans.
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“Unfortunately speculators are propping up canola on the spreads versus Chicago,” he commented.
As United States/China trade talks have hit a sour note, with looming U.S. tariff hikes set for Friday, soybeans have been taking the brunt of the fallout on the commodities market.
Approximately 6,600 canola contracts were traded as of 10:35 CDT.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
Price Change
Canola Jul 434.60 dn 2.90
Nov 448.10 dn 3.30
Jan 454.80 dn 2.80
Mar 460.90 dn 2.50
