By Glen Hallick, MarketsFarm
WINNIPEG, July 12 (MarketsFarm) – ICE Futures canola contracts were trading either side of steady at midday Friday, as light volumes have continued to be a major feature.
Besides less activity, as often been the case as the July contract is about to come off the board and the crop year is about to wind up; there are other factors that have been at play, according to a Winnipeg-based trader.
One being a sizeable carryout of up to 4.50 million tonnes combined with a crop that’s still in the field.
“There’s enough crop that’s in decent shape, we’re still going to have enough canola to go around,” the trader commented.
Plus, there has been little urgency in what he called a “lifeless” market. A major reason for that has continued to be China’s ban on canola imports from Canada.
The Canadian dollar as well as not been supportive, as the loonie has been on the rise. The dollar at late morning was at 76.67 U.S. cents.
Approximately 3,100 canola contracts were traded as of 10:28 CDT.
Prices in Canadian dollars per metric tonne at 10:28 CDT:
Canola Nov 447.50 up 0.30
Jan 454.30 dn 0.20
Mar 461.00 dn 0.30
May 466.90 dn 0.20