By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures turned lower at midsession Thursday, as support from gains in comparable oils slipped back.
Following the Juneteenth holiday, upticks in Chicago soyoil were fading while soybeans and soymeal were already weaker. European rapeseed was mostly lower and there were increases in Malaysian palm oil. Crude oil was higher, although its prices had slipped back a little, giving a little less support to the oilseeds.
A trader warned that a significant portion of all crops on the Prairies are faced with delayed growth.
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“About 30 to 35 per cent of the Prairies is too wet and cool, and crops are not developing very fast,” he stated, noting this makes them vulnerable.
“It’s not a disaster. It’s not quite the start we were hoping for. I think the potential is still there for an overall extremely good crop on the Prairies,” he added, stressing the weather needs to improve.
Besides crop conditions, the trader pointed to the spec funds that are putting pressure on the short side.
“You never know how far they can push things,” he commented.
The Canadian dollar edged a bit higher by late Thursday morning, with the loonie at 72.99 U.S. cents compared to Wednesday’s close of 72.94.
Approximately 18,750 canola contracts were traded as of 10:40 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Jul 608.00 dn 1.90 Nov 626.40 dn 2.00 Jan 632.30 dn 2.30 Mar 636.50 dn 1.00
