WINNIPEG – The ICE Futures canola market was diverging at midday Thursday. The July canola contract continued to rise amidst tight supply and warm weather concerns, while new crop contracts were declining in the single digits.
The July canola contract was not increasing at a similar pace to yesterday when it topped off at its upper limit and caused ICE to increase the daily limit to C$45 per tonne. Nevertheless, traders are paying close attention to the weather forecast in Western Canada and the United States Northern Plains.
“(Weather forecasts are) the overriding factor. We’ve seen a massive C$30 (per tonne) trading range today in the November contract,” said a Winnipeg-based trader. “Market participants are concerned about dryness, heat coming in. There was some rain across southern Alberta and southern Saskatchewan, but that looks to fizzle as it continues to move east.”
The Chicago soy complex moved downward in concert with new crop canola at midday. Soybean contracts were falling at least US$20 per tonne, with soyoil and soymeal also in the red.
The Canadian dollar was down 0.18 of a cent at midday.
Nearly 16,800 contracts were traded as of 10:44 a.m. CDT.
Price Change
Canola Jul 787.10 up 14.80
Nov 735.50 dn 2.40
Jan 734.20 dn 5.40
Mar 726.60 dn 7.40
