By Glen Hallick, MarketsFarm
WINNIPEG, May 23 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mixed at midday Tuesday, after the Canadian markets were closed for Victoria Day. While there were gains in the old crop July contract, the new crop positions were mixed, with losses in the November and January contracts.
Over the long weekend, Alberta received two to three inches of rain, with some areas getting upwards to five inches. Not only has that brought some relief to the wildfire situation, but it’s also provided much needed moisture to the crops.
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On Friday the province reported that Alberta farmers were 55 per cent complete in their spring planting, with canola 39 per cent finished. Prior to the rains, soil moisture levels rated 51 per cent poor to very poor.
Pressure on canola came from a sharp downturn in the Chicago soy complex and more moderate losses in Malaysian palm oil, while support was derived from gains in European rapeseed. Global crude oil prices were higher, which spilled over into the vegetable oils.
Crush margins were holding firm after losing a large amount of ground over the last month. However, the margins are still strong enough to underpin canola values.
The Canadian dollar was virtually unchanged on Tuesday with the loonie at 74.08 U.S. cents, compared to Friday’s close of 74.06.
Approximately 30,350 canola contracts were traded as of 10:22 CDT.
Prices in Canadian dollars per metric tonne at 10:22 CDT:
Price Change Canola Jul 701.60 up 5.20 Nov 666.20 dn 3.20 Jan 670.00 dn 3.50 Mar 678.30 unchanged
