By Glen Hallick, MarketsFarm
WINNIPEG, July 8 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) continued on the upswing for a second day at midday Thursday, due to growing nervousness over crop development.
“Crop concerns continue to be center stage,” commented a Winnipeg-based trader. “There’s heat building in the [Prairie] forecast.”
Also, the extreme heat the region has already experienced is curtailing some canola blooms, forcing them to “shut down.” The quicker blooms cease, the less podding will take place, which will lead to reduced yields, the trader explained.
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That has fueled speculation that production could fall well short of the 20 million tonnes of canola previously projected.
In comparable oils, Chicago soybeans were on the rise, but the products were steady to lower. European rapeseed was mixed, with gains in the front months and there were small declines in Malaysian palm oil.
With declining global crude oil prices, the Canadian dollar fell well below the 80-cent mark. The loonie slid to 79.71 U.S. cents compared to Wednesday’s close of 80.16.
Approximately 12,000 canola contracts were traded as of 10:36 CDT.
Prices in Canadian dollars per metric tonne at 10:36 CDT:
Price Change
Canola Nov 814.40 up 23.50
Jan 806.70 up 20.40
Mar 794.60 up 17.30
May 775.50 up 11.30
