By Glen Hallick, MarketsFarm
WINNIPEG, April 28 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower at midday on Wednesday, including the May contract that had been showing gains today.
A trader noted the May was “getting down to its last little bit” as the open interest in the contact was below 1,600.
That said, since Tuesday’s release of the Statistics Canada’s planting projections, canola has struggled despite the report being bullish. That included the November contract tumbling to its down limit during the overnight session.
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“That’s a bit scary,” the trader commented. “I’m sure there are some nervous longs in here.”
However, with the May contracts in the Chicago Board of Trade (CBOT) soy complex and corn, along with ICE canola soon to expire, the trader said that has created a fair bit of volatility in the markets.
Added to that mixture has been a decent planting pace in the United States, while on the Prairies things have been much slower. For instance, Manitoba Agriculture reported planting was a mere two per cent complete.
The Canadian dollar continued on the upswing, which weighed on values. The loonie was at 80.87 U.S. cents, compared to Tuesday’s close of 80.63.
Approximately 13,700 canola contracts were traded as of 10:34 CDT.
Prices in Canadian dollars per metric tonne at 10:34 CDT:
Price Change
Canola May 900.60 dn 1.30
Jul 834.80 dn 2.30
Nov 688.50 dn 5.40
Jan 684.70 dn 6.90
