By Glen Hallick, Commodity News Service Canada
WINNIPEG, Feb. 19 (CNS Canada) – At midday Tuesday the ICE canola futures were a mixed bag, with the bias towards the downside according to a Winnipeg-based trader.
The soybean complex on the Chicago Board of Trade was slightly lower, which was supportive. As was the Australian canola production estimates, which forecast the Australian crop at 2.18 million tonnes, down from 3.67 million tonnes for 2017-18.
“That was no big surprise,” the trader said.
There was active spread trade as well.
“Commercials and commission houses are rolling their positions out of March and into May,” he said, noting the spread tightened from C$9.30 earlier in the morning to C$8.70 by midday.
Farmers were continuing to be light sellers, but warmer temperatures forecast for this week could spark more canola going into the commercial pipeline, the trader commented.
About 18,900 canola contracts were traded as of 10:36 CST.
Prices in Canadian dollars per metric tonne at 10:36 CST:
Price Change
Canola Mar 475.00 dn 0.80
May 483.60 dn 1.20
Jul 490.80 dn 1.30
Nov 493.10 dn 1.10
