By Glen Hallick, MarketsFarm
WINNIPEG, April 12 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were weaker at midday Monday, but contracts were recovering from earlier lows.
“A little bit of (precipitation) on the Prairies was enough to break the canola pricing,” a Winnipeg-based trader commented.
As the need to get the crops planted this spring intensifies, the trader said the markets will “have quite a few swings off and on over the coming weeks and months.”
While the rain and snow on the Prairies brought welcomed moisture to the dry conditions, especially in southern Manitoba and eastern Saskatchewan, amounts are likely not enough to rectify the dryness. However, the precipitation will aid the germination of crops planted early.
At the Chicago Board of Trade soybeans and soyoil were down sharply. Small to moderate losses in European rapeseed and Malaysian palm oil added to declines in canola.
The Canadian dollar was slightly lower, with the loonie at 79.60 U.S. cents compared to Friday’s close of 79.72.
Approximately 12,500 canola contracts were traded as of 10:35 CDT.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
Canola May 798.60 dn 12.40
Jul 725.40 dn 13.40
Nov 620.20 dn 9.00
Jan 617.70 dn 12.20