By Glen Hallick, MarketsFarm
WINNIPEG, July 23 (MarketsFarm) – ICE Futures canola contracts were trading either side of steady at midday Tuesday, in another session of light activity.
A Winnipeg-based trader said the canola market will likely remain choppy until it gets some direction from the markets in the United States.
“Canola goes up half as much as they do, then goes down half as much as they do, which is typical of canola. The traders, especially in this type of market, they try to hang back on the canola, so they don’t push it around quite as much,” the trader commented.
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The crop reports from the three Prairie provinces have begun to create a clearer picture of canola. Last week, Saskatchewan canola was 42 per cent good to excellent condition, while Alberta and Manitoba rated around 70 per cent, he said.
That has made for a decent crop, but not a terrific one, he added.
As the Canadian dollar has continued to retreat from being over 76 U.S. cents, that has begun to provide support for canola, the trader said. The loonie was at 76.08 U.S. cents, having dropped from Monday’s close of 76.32.
Approximately 4,700 canola contracts were traded as of 10:29 CDT.
Prices in Canadian dollars per metric tonne at 10:29 CDT:
Price Change
Canola Nov 446.70 dn 0.30
Jan 453.60 dn 0.30
Mar 460.40 dn 0.50
May 467.10 up 0.40
