WINNIPEG – New crop contracts in the ICE Futures canola market were in liquidation mode at midday Wednesday as traders positioned themselves before the United States Department of Agriculture released its acreage report.
New crop canola contracts were dropping by more than C$20 per tonne. One Winnipeg-based trader explained that Statistics Canada’s acreage report released yesterday, which showed a slight increase in canola acres, and anxiety over the USDA’s report have brought downward pressure on the markets. Rains forecast for Alberta in the coming days, despite lingering heat, were also taken into consideration by traders.
“This heat is still hanging around and is still a concern in the short term,” the trader said. “In the U.S. with the acreages and stocks (report), I think there’s some long liquidation in the beans and corn.”
The Chicago soy complex saw losses with soybean contracts falling 20 U.S. cents per bushel.
The Canadian dollar held steady at midday.
Nearly 12,800 contracts were traded as of 10:45 a.m. CDT.
Price Change
Canola Nov 770.10 dn 24.50
Jan 769.00 dn 19.30
Mar 756.20 dn 22.70
May 749.00 dn 19.00
