By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 4 (MarketsFarm) – ICE Futures canola contracts were mixed at midday Tuesday, after playing catch up with yesterday’s gains in the Chicago soy complex on the first day of the 2020/21 crop year for most Canadian crops.
“It’s just a rebalancing from yesterday as product values were up about $6 and now values are down $5,” a Winnipeg-based trader commented.
“Canola is precisely in line with the net product values over the last couple of days combined,” he added, but noted canola has little upside to it right now.
That weakness in the soy complex has been largely due to a crop survey released by FC Stone the trader said. The survey pegged United States soybean yields at 54.2 bushels per acre and the carryout rising to 800 million bushels.
“Their survey has a fairly decent history of being in the ballpark. They’re usually not way off the mark,” he said, noting that some crop tours in Illinois and Iowa came away with higher yield projections.
The Canadian dollar was stronger at 74.86 U.S. cents, compared to Friday’s close of 74.60.
Approximately 14,800 canola contracts were traded as of 10:36 CDT.
Prices in Canadian dollars per metric tonne at 10:36 CDT:
Canola Nov 490.00 dn 1.60
Jan 496.50 dn 0.60
Mar 500.00 unchanged
May 502.60 up 0.20