By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 18 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower at midday Monday, in thin trading due to the United States markets being closed for Martin Luther King Jr. Day.
“It’s hard to tell how canola will trade on these days. Sometimes it’s dead, sometimes it gets swingy. It’s kind of dead, going up and down a little bit,” said a Winnipeg-based trader.
There was some support from other edible oils, with gains in European rapeseed and Malaysian palm oil.
The trader commented that canola held up quite well last week with the declines in vegetable oils, noting there was room for the Canadian oilseed to have lost another C$5 to C$10 per tonne.
However, with concerns over tight ending stocks, he said canola needs to become more expensive in order to kill demand.
The trader also emphasized the need to keep an eye on the South American soybean crop, with Brazil still on track to reap a record harvest of about 133 million tonnes. While Argentina won’t produce a record crop of its own, he stressed they’re expected to produce approximately 47 million tonnes of soybeans.
Although the Canadian dollar was lower, the trader said the loonie wasn’t having too much of an effect in supporting canola. The dollar was at 78.36 U.S. cents after closing Friday at 78.57.
Approximately 5,000 canola contracts were traded as of 10:41 CST.
Prices in Canadian dollars per metric tonne at 10:41 CST:
Canola Mar 685.10 dn 2.60
May 666.00 dn 2.80
Jul 648.80 dn 3.60
Nov 550.40 dn 3.70