By Glen Hallick, MarketsFarm
WINNIPEG, Feb. 19 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola was higher at midday Friday, as tight supplies continue to drive up prices, according to a Winnipeg-based trader.
“We’re having a harder and harder time pulling canola from farmers’ hands. They don’t have much left,” the trader said, adding there were declines in exports and domestic usage.
The Canadian Grain Commission reported producer deliveries of canola for the week ended Feb. 14 were 263,100 tonnes, down nearly 46 per cent from the previous week. Canola exports were 50,600 tonnes, falling 70 per cent and domestic usage was 178,200 tonnes, dropping 11.5 per cent.
The trader noted the March contract touched briefly on the C$30 per tonne limit earlier hitting a record high of C$780.90 per tonne, before stepping back. However, the contract expires today with open interest declining quickly.
A stronger Canadian dollar was weighing on values at midday. The loonie was at 79.36 U.S. cents compared to Thursday’s close of 78.76.
Approximately 11,900 canola contracts were traded as of 10:55 CST.
Prices in Canadian dollars per metric tonne at 10:55 CST:
Canola May 735.40 up 8.50
Jul 704.10 up 9.00
Nov 592.60 up 9.20
Jan 592.90 up 8.00