ICE canola midday: Prairie dryness, soybeans pushing up prices

By Glen Hallick, MarketsFarm

WINNIPEG, May 22 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Wednesday, fueled by dryness across the Prairies and increases in the soy complex on the Chicago Board of Trade, according to a Winnipeg-based trader.

The July canola contract was up C$2.70 at C$445.10 per tonne. The November contract gained C$3.50 per tonne at C$458.20 per tonne.

The trader noted the pace of planting in Western Canada has been very good this spring, but rain is needed in most parts for the crops to germinate and grow.

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The soy complex was up at midday, but it has been volatile, the trader said. The main reason being the yet-to-be-confirmed US$20 billion aid package the United States government is said to be preparing for the country’s farmers. Soybean growers are to get US$2 per bushel because of the ongoing U.S./China trade war that’s hurt soybean exports, according to reports.

Approximately 7,100 canola contracts were traded as of 10:21 CDT.

Prices in Canadian dollars per metric tonne at 10:21 CDT:

Price Change
Canola Jul 445.10 up 2.70
Nov 458.20 up 3.50
Jan 464.40 up 3.90
Mar 469.80 up 3.80