By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 18 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were attempting to recover from larger losses earlier in the session. At one point this morning the November contract fell below C$800 per tonne but recovered some lost ground.
“Beanoil broke kind of bad today,” a trader said, pointing out that canola is relatively cheap. “If beanoil starts to slide, canola is going to be in real trouble.”
As well, he noted that the crush margins are among the highest he has seen.
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“It’s insane how much money they’re making now,” the trader stated. “They strongly sense prices are going to be lower into the fall.”
With the Prairie weather seeing some areas getting too little rain and other areas too much moisture, the trader said it’s very likely canola production could be under 19 million tonnes.
The Canadian dollar was down a pinch at 77.39 U.S. cents, compared to Wednesday’s close of 77.45.
Approximately 17,350 canola contracts were traded as of 10:41 CDT.
Prices in Canadian dollars per metric tonne at 10:41 CDT:
Price Change
Canola Nov 807.00 dn 8.60
Jan 816.70 dn 7.70
Mar 823.30 dn 7.90
May 827.10 dn 7.90
