By Glen Hallick, MarketsFarm
WINNIPEG, May 14 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were gaining some strength at midday Friday, turning around after steep losses on Thursday.
A trader explained the new crop November canola contract has been closely following the product values of Chicago soyoil and soymeal, which were swinging upward.
But it has been a different story for the nearby July contract.
“The longs have been taking profits and rolling into November, but they have the July at the point where it’s just way too cheap,” he commented.
“The shorts are covering, but knowing they have got to get out of that contract. Nobody wants to be near delivery,” the trade stated.
“The July and the November are almost unrelated markets,” he said, noting each contract has essentially been doing its own thing.
While renewed strength in the Canadian dollar wasn’t an onerous force holding back canola values, the trader said the loonie was chipping away at the prices. The Canadian dollar was at 82.62 U.S. cents, compared to Thursday’s close of 82.30.
Approximately 12,700 canola contracts were traded as of 10:38 CDT.
Prices in Canadian dollars per metric tonne at 10:38 CDT:
Canola Jul 867.10 up 9.80
Nov 741.80 up 4.90
Jan 735.00 up 7.90
Mar 721.50 up 8.40
Futures Prices as of May 14, 2021
Prices are in Canadian dollars per metric ton