ICE Canada Morning Comment: Canola continues to rally
May contract pokes head above $600/tonne
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures remained on the upswing Thursday morning, pushing above two-week highs.
As the May contract stepped over $600 per tonne it exceeded its 20-day average but was still well back of its other major averages.
Support spilled over from gains in Chicago soybeans and especially soyoil, plus increases in European rapeseed and Malaysian palm oil. A small amount of pressure came from declines in Chicago soymeal. Crude oil was relatively steady, providing little direction to the vegetable oils.
However, trade issues loomed in the background with China’s tariffs on Canadian canola meal and oil imports as well as the uncertainty over levies from the United States, set for April 2.
The Canadian dollar was lower on Thursday morning, with the loonie at 69.84 U.S. cents, compared to Wednesday’s close of 70.09.
Approximately 11,050 contracts were traded by 8:36 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola May 600.30 up 11.40 Jul 605.90 up 11.00 Nov 603.20 up 7.60 Jan 612.30 up 8.50
