By Glen Hallick, MarketsFarm
WINNIPEG, May 10 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were weaker at midday Monday due to a round of profit-taking, according to a Winnipeg-based trader.
The softening of Chicago soyoil weighed on canola values as well, he said, noting soyoil “had a long, aggressive run.”
Declines in European rapeseed and Malaysian palm oil added to the pressure on canola.
A stronger Canadian dollar continued to weigh on canola values. The loonie was at 82.73 U.S. cents, compared to Friday’s close of 82.26.
However, the trader warned there have been some rumblings that Western Canadian farmers could turn away from planting canola should weather conditions remain dry over the coming three weeks.
“It’s just too dangerous to seed canola into dusty, dry conditions,” the trader stated.
Over the weekend approximately 70 per cent of Alberta received half inch to one and a half inches of rain, he said. However, about 15 per cent Saskatchewan received rain, mostly in the southwest corner of the province.
Approximately 12,000 canola contracts were traded as of 10:49 CDT.
Prices in Canadian dollars per metric tonne at 10:49 CDT:
Canola Jul 983.50 dn 22.40
Nov 734.70 dn 17.40
Jan 724.10 dn 19.40
Mar 715.80 dn 18.50