By Glen Hallick, MarketsFarm
WINNIPEG, May 12 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher in the new crop months at midday Wednesday, with continuing declines in the old crop July contract.
A Winnipeg-based trader explained there is a mass liquidation of the July contract this week after it moved C$250 per tonne ahead of the November contract.
“That was crazily stupid,” the trader stated. “There’s no use being long in the July. I’ll dump the July and buy the November.”
He said there was also good spillover support coming from increases in the Chicago soy complex in the run-up to today’s supply and demand estimates from the United States Department of Agriculture (USDA). The report, which is expected to be bullish for the soybeans, will decide how things will play out for the remainder of the session and perhaps the coming days.
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Additional strength was coming from gains in European rapeseed and Malaysian palm oil.
With the Canadian dollar virtually unchanged at 82.67 U.S. cents, it continued to weigh on canola values.
Approximately 17,900 canola contracts were traded as of 10:39 CDT.
Prices in Canadian dollars per metric tonne at 10:39 CDT:
Price Change
Canola Jul 927.00 dn 5.30
Nov 760.80 up 23.00
Jan 749.00 up 19.80
Mar 733.90 up 17.70
