By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 5 (MarketsFarm) – The ICE Futures canola market was mixed at midday Wednesday, with gains in the old crop July contract and a softer tone in the new crop positions.
Farmer hedges accounted for much of the selling pressure in the deferred contracts as recent gains saw some price targets hit, according to a broker.
A firmer tone in the Canadian dollar also put some pressure on values.
However, tight old crop supplies and uncertainty over new crop production remained supportive. The nearby July contract climbed by nearly C$40 per tonne in early activity but did run into some resistance to post more modest gains by midession.
About 13,300 canola contracts traded as of 10:39 CDT.
Prices in Canadian dollars per metric tonne at 10:39 CDT:
Canola Jul 906.30 up 12.30
Nov 724.80 dn 5.70
Jan 719.80 dn 5.50
Mar 713.00 dn 6.60