By Glen Hallick, MarketsFarm
WINNIPEG, Feb. 5 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were mixed at midday Friday with front months steady to lower, while there were gains in the deferred months.
“We are still seeing the liquidation in the March contract. A lot of commercials are not overly aggressive with their March positions,” a Winnipeg-based trader said.
“There are fairly good prices for new crop. Also there are some good prices for the other crops as well, so the canola-soybean battle is heating up already,” he added.
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The Statistics Canada report on grain stocks as of Dec. 31 provided some support. Total canola stocks shrank from nearly 15.91 million tonnes in December 2019 to 12.14 million at the end of 2020.
Demand for canola has remained strong, with the Canadian Grain Commission reporting 398,100 tonnes of canola delivered for the week ended Jan. 31. At 258,500 tonnes canola exports jumped nearly 124 per cent from last week, while domestic usage was on par with the previous week at 198,300 tonnes.
The Canadian dollar was up a third of a cent at midday. The loonie was at 78.28 U.S. cents compared to Thursday’s close of 77.95.
Approximately 15,500 canola contracts were traded as of 10:52 CST.
Prices in Canadian dollars per metric tonne at 10:52 CST:
Price Change
Canola Mar 693.40 dn 2.10
May 675.60 unchanged
Jul 656.30 dn 1.10
Nov 564.30 up 3.20
