WINNIPEG, Manitoba--Intercontinental Exchange canola futures were narrowly mixed at midsession Thursday, as opposing factors work to keep the Canadian oilseed rangebound, a trader said.
Trading in canola resumed after the Canada Day holiday on Wednesday.
While a record amount of planted canola acres applied pressure onto prices, the recent heavy rains will cut into potential harvested acres, the trader said.
Rain was forecast to dominate the Prairie weather outlook, with temperatures in the eastern half of the region climbing into the high-20 degrees Celsius or more starting the weekend.
The trader added that demand for canola, foreign and domestic, remains strong.
Until there's some kind of dramatic change in the market, he said, canola will stay rangebound with the November contract between 730 Canadian dollars and C$750 per ton.
That November contract was a pinch above its 100-day moving average, although in recent sessions it slipped below that level.
The Canadian dollar was higher by late Thursday morning, with the loonie at 70.52 U.S. cents compared with Tuesday's close of 70.37.
Approximately 37,150 canola contracts were traded as of 11:50 a.m. EDT, with prices in Canadian dollars per metric ton:
Price Change Nov 735.40 up 0.10 Jan 743.80 dn 0.10 Mar 749.90 dn 0.30 May 754.10 up 0.40Source: Commodity News Service Canada, news@marketsfarm.com