By Glen Hallick, MarketsFarm
WINNIPEG, July 12 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were stronger at midday Monday, as the actively traded contracts remained at their expanded daily limit of C$45 per tonne.
A Winnipeg-based trader said this powerful uptick is solely due to the hot, dry conditions across the Prairies. He also said the drought continued to instill price rationing into the canola market, due to grave concerns over supplies.
“Every day that goes by we are tightening up little more,” the trader stated.
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Ending stocks for 2020/21 were pegged at mere 700,000 tonnes and that for 2021/22 at only 750,000. With production possibly coming well under the projected 20 million tonnes, the supply situation will keep price rationing in the market for some time.
There was support from gains in the Chicago soy complex as well as European rapeseed. Malaysian palm was down slightly.
After starting the day lower, the Canadian dollar has moved higher and appeared to have no effect on canola prices. The loonie was at 80.26 U.S. cents compared to Friday’s close of 80.15.
Approximately 6,950 canola contracts were traded as of 10:23 CDT.
Prices in Canadian dollars per metric tonne at 10:23 CDT:
Price Change
Canola Nov 889.00 up 45.00
Jan 881.30 up 45.00
Mar 869.40 up 45.00
May 849.10 up 45.00
