By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were pulling back at mid-session Thursday. However, concerns over the South American soybean crop were filtering in, according to a trader.
“How big is the Brazil crop? How much damage is the Argentina crop taking from the current hot, dry situation?” the trader posed.
Most consultancy projections for the Brazil soybean harvest have dropped to less than 150 million tonnes, while fresh numbers have yet to come out of Argentina which had been set to double its soybean harvest from last year.
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“There’s just enough uncertainty to keep the markets a little bit on edge, but not enough to spark anything big at the moment,” the trader commented.
He noted canola has yet to find its low, but prices were “leveling off a little bit, which is a good sign.”
Pressure on canola came from declines in the Chicago soy complex and European rapeseed. The Malaysian palm oil market remained closed for a holiday. Modest gains in global crude oil prices lent some support to vegetable oils.
By late-Thursday morning the Canadian dollar was virtually unchanged at 74.66 U.S. cents.
Approximately 26,850 canola contracts were traded as of 10:43 CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Mar 607.50 dn 2.90 May 614.60 dn 3.40 Jul 619.00 dn 3.30 Nov 618.50 dn 4.20
