ICE Canada Morning Comment: Canola correcting lower
Support from most veg oils tempering declines
By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures stepped back on Thursday morning, correcting from recent hikes.
While there were declines in Chicago soyoil, the soybeans and soymeal were higher, along with gains in Malaysian palm oil and most European rapeseed contracts. Crude oil was relatively steady, offering little direction to the vegetable oils.
Concerns over dry conditions on the Prairies and the possibility of canola becoming again eligible for United States biofuel tax credits underpinned the oilseed’s recent surge. That has kept the November canola contract well above its major moving averages.
Manitoba reported its canola ranges from the four-leaf stage to full bloom, depending on when it was seeded.
The Canadian dollar was higher on Thursday morning, with the loonie at 73.58 U.S. cents compared to Wednesday’s close of 73.41.
Approximately 10,700 contracts were traded by 8:35 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Nov 727.00 dn 7.50 Jan 735.70 dn 6.50 Mar 740.80 dn 7.20 May 747.20 dn 5.60
