ICE Canada Morning Comment: Canola eases back
Uncertainty looms over market
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures dipped Wednesday morning in choppy trading.
Small losses in Chicago soyoil, European rapeseed and Malaysian palm oil helped to push canola lower. However, gains in Chicago soybeans and soymeal as well as crude oil underpinned the vegetable oils.
Canola’s March contract held above its 200-day moving average.
The short position in canola fell to its lowest level in two months, as fund traders added new longs.
With Donald Trump to be sworn-in as the President of the United States on Monday, an air of uncertainty looms large over the canola market when it comes to tariffs and biofuel policies.
Meanwhile, reduced canola supplies are likely to lead to price rationing as spring approaches.
The Canadian government gave its approval to the US$8.2 billion merger of Bunge and Viterra, with conditions regarding competition.
The Canadian dollar is higher on Wednesday morning, with the loonie at 69.87 U.S. cents compared to Tuesday’s close of 69.58.
Approximately 6,650 contracts were traded by 8:38 CST and prices in Canadian dollars per metric tonne were:
Price Change Canola Mar 641.30 dn 0.30 May 650.40 dn 0.40 Jul 656.30 dn 0.50 Nov 636.50 dn 0.60
