By Glen Hallick, MarketsFarm
WINNIPEG, July 22 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were sharply lower at midday Thursday, following declines in the Chicago soy complex. However prices have pulled away from earlier lows.
There were also losses in European rapeseed as well as in most Malaysian palm oil futures, except its nearby August contract which was higher.
Long positioned profit-taking was weighing on canola values as well, according to a Winnipeg-based trader.
The weather forecast has called for scattered showers across the Prairies today, with temperatures varying from the low 20 degrees Celsius into the low 30’s.
The trader said there’s something of a debate over the amounts of rain received throughout the region, as some areas remain very dry. Nevertheless, those areas with rain have seen crops become more stable.
He added the trade will be keeping a keen eye on this afternoon’s weekly crop report from Saskatchewan Agriculture.
And, the trader said the markets have been somewhat skeptical towards reports of heavy rain and flooding in China. Assumptions are the damage is more severe and widespread than what the country’s media has said.
The Canadian dollar nudged a little higher, with the loonie at 79.55 U.S. cents compared to Wednesday’s close of 79.43.
Approximately 12,700 canola contracts were traded as of 10:33 CDT.
Prices in Canadian dollars per metric tonne at 10:33 CDT:
Canola Nov 861.30 dn 18.60
Jan 850.30 dn 16.80
Mar 833.90 dn 18.10
May 812.90 dn 19.80