By Glen Hallick, MarketsFarm
WINNIPEG, March 25 (MarketsFarm) – ICE Futures Canola contracts were up Monday morning, as Friday’s drop in prices has left canola prices due for a bounce, according to a report.
The May canola contract was up $4.30 to $458.20 per tonne.
Also providing support were spring road bans on the Prairies, which has limited farmers’ ability to deliver their grain to the market. And speculation farmers could be planting less canola in 2019 than in 2018.
The Canadian dollar on Monday morning was down at 74.45 U.S. cents, slipping along with crude oil prices.
Wet conditions in the United States continue to cause problems. There is severe flooding in a number of states, with Iowa currently at $1.6 billion in damages. The flooding could see U.S. farmers switch their planting intentions from corn to soybeans, which would weigh on canola prices.
The findings of the Mueller Report were released in the U.S. on Sunday. The report stated there was no collusion between Donald Trump and Russia during the 2016 president election. The report, however did not completely exonerate Trump.
Markets in the U.S. did get something of a bump from the report.
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are in China today for trade talks. Any positive news from the negotiations would be welcomed by the markets.
About 11,000 canola contracts had traded as of 9:55 CDT.
Prices in Canadian dollars per metric ton at 9:55 CDT:
Canola May 458.20 up 4.30
Jul 466.80 up 4.30
Nov 478.40 up 3.60
Jan 485.60 up 4.30