By Glen Hallick, MarketsFarm
WINNIPEG, May 13 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were retreating at midday Thursday, with the old crop July contract at the expanded down limit of C$45 per tonne.
Should that trading remain at the down limit, then it will be further expanded to C$60 per tonne for Friday’s session.
A trader said there is a good amount of profit-taking in the United States markets that’s dragging down canola, including weakness in crude oil prices. As well, he said the markets were being overly sensitive towards inflation in the U.S.
Dryness across the Prairies was beginning to pose a challenge to planting canola, with farmers perhaps looking to other crops that are drought resistant, he said.
The weekly crop report from Saskatchewan Agriculture, due out today, was expected to show good seeding progress, but with growing concerns about the dry conditions.
The Canadian dollar was lower at 82.33 U.S. cents, compared to Wednesday’s close of 82.67.
Approximately 15,300 canola contracts were traded as of 10:37 CDT.
Prices in Canadian dollars per metric tonne at 10:37 CDT:
Canola Jul 857.30 dn 45.00
Nov 739.00 dn 15.70
Jan 728.60 dn 17.50
Mar 709.50 dn 22.20