By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 10 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower at midday Tuesday, driven down by shrinking crush margins, according to a trader.
“We dropped almost C$100 per tonne in two weeks on the crush margins,” he said.
As of Aug. 9, ICE crush margins for November-October were C$5.35/tonne with November-December at C$6.03. Only a week ago those margins were C$72.62 and C$69.35 respectively.
The tight supply situation with canola is said to be reason why margins have shrunk drastically in a short time.
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The trader also noted the margins were keeping a tight lid on trading volumes, which have been approximately half of what they normally are.
Gains in the Chicago soy complex and European rapeseed were tempering the declines in canola. Malaysian palm oil, which was down slightly wasn’t much of a factor.
The markets should be getting a better idea of the canola harvest, which is in its early stages, with the Manitoba crop report being issued later this afternoon. So far, the few reports on the harvest have been anecdotal.
The Canadian dollar was on the rise at midday, with the loonie at 79.78 U.S. cents compared to Monday’s close of 79.59.
Approximately 6,600 canola contracts were traded as of 10:41 CDT.
Prices in Canadian dollars per metric tonne at 10:41 CDT:
Price Change
Jan 864.80 dn 2.00
Mar 849.60 dn 1.00
May 831.20 dn 0.30
