By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 7 (MarketsFarm) – ICE Futures canola contracts were slightly lower at midday Friday, as soyoil values at the Chicago Board of Trade retreated.
A Winnipeg-based trader said canola doesn’t react quickly to swings in soyoil, noting that product values were currently down about $3 per tonne.
“Canola seems to move up or down about half as much as the U.S. markets. It’s a good thing in a way, but sometimes it takes away opportunities,” he explained.
“Also, there’s a little bit of selling percolating in canola,” the trader added.
The Canadian dollar was lower at 74.73 U.S. cents, compared to Thursday’s close of 75.23. That decline helped to stem canola from dropping further.
Next week could see volatility thrown into the market, he said. There’s the United States Department of Agriculture August supply and demand report on Aug. 12, and whether the U.S. soybean crop gets some much needed rain over the weekend or not.
Approximately 9,100 canola contracts were traded as of 10:57 CDT.
Prices in Canadian dollars per metric tonne at 10:57 CDT:
Canola Nov 489.40 dn 0.40
Jan 495.00 dn 0.90
Mar 498.40 dn 1.40
May 501.80 dn 2.00