ICE canola weakens with outside markets at midday Monday

By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, July 19 (MarketsFarm) – The ICE Futures canola market was weaker at midday Monday, as losses in outside markets and improving weather conditions in parts of Western Canada weighed on values.
“When you have crude oil down almost five dollars (per barrel) and (Chicago Board of Trade) bean oil getting hammered because of that, canola has to come down with it,” said a Winnipeg-based trader.
Smoky conditions across much of the southern Prairies, due to forest fires, were helping ease concerns over hot temperatures with some moisture in the forecasts for many areas this week as well.

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However, the precipitation may not be enough to ease drought concerns in many areas which should keep a weather premium in the futures, according to the trader.
Sharp weakness in the Canadian dollar, which had lost nearly a cent relative to its United States counterpart at midday, was also supportive for canola.
About 10,000 canola contracts traded as of 10:42 CDT.

Prices in Canadian dollars per metric tonne at 10:42 CDT:

Price Change
Canola Nov 907.70 dn 10.30
Jan 889.50 dn 9.90
Mar 866.90 dn 11.90
May 844.00 dn 14.10