ICE Midday : Canola Contracts Mixed as Warm Weather Approaches

WINNIPEG--The ICE Futures canola market was diverging at midday Thursday. The July canola contract continued to rise amid tight supply and warm weather concerns, while new crop contracts were declining in the single digits.

The July canola contract was not increasing at a similar pace to Wednesday when it topped off at its upper limit and caused ICE to increase the daily limit to C$45 per metric ton. Nevertheless, traders are paying close attention to the weather forecast in Western Canada and the U.S. Northern Plains.

"(Weather forecasts are) the overriding factor. We've seen a massive C$30 (per metric ton) trading range today in the November contract," said a Winnipeg-based trader. "Market participants are concerned about dryness, heat coming in. There was some rain across southern Alberta and southern Saskatchewan, but that looks to fizzle as it continues to move east."

The Chicago soy complex moved downward in concert with new crop canola at midday. Soybean contracts were falling at least US$20 per metric ton, with soyoil and soymeal also in the red.

The Canadian dollar was down 0.18 cent at midday.

Nearly 16,800 contracts were traded as of 11:44 a.m. EDT.

 
              Price    Change 
Canola   Jul  787.10  up 14.80 
         Nov  735.50  dn  2.40 
         Jan  734.20  dn  5.40 
         Mar  726.60  dn  7.40 
 

Source: Commodity News Service Canada, [e-mail]

(END) Dow Jones Newswires

06-24-21 1221ET