By Glen Hallick, MarketsFarm
WINNIPEG, June 11 (MarketsFarm) – New crop canola futures on the Intercontinental Exchange (ICE) were taking a hit at midday Friday, after rain fell on parts of the Prairies, but that wasn’t the only factor. Meanwhile, the liquidation of the July contract contributed to its losses.
A Winnipeg-based trader said sharp declines in the Chicago soy complex were also contributing to the slide in new crop contracts. The situation was further exacerbated by declines in European rapeseed and Malaysian palm oil.
While Prairie rains have pressured canola, the trader believed there was still something of a weather premium in prices. He added that tight canola supplies also remained an important factor in tempering further losses.
The Canadian dollar was falling back, with the loonie at 82.28 U.S. cents compared to Thursday’s close of 82.69.
Approximately 9,850 canola contracts were traded as of 10:22 CDT.
Prices in Canadian dollars per metric tonne at 10:22 CDT:
Canola Jul 861.10 dn 10.70
Nov 738.80 dn 21.50
Jan 741.20 dn 21.80
Mar 742.00 dn 19.30