ICE Canada Morning Comment: Canola trying to stay positive
Oilseed stepping away from larger gains
By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures were clinging on to small gains on Wednesday morning, fading from larger increases after Chicago soybeans and soyoil started the day on the downside.
Losses in European rapeseed and Malaysian palm oil added more pressure on to canola.
Gains in crude oil were generated by news that China and the United States reached a trade deal on technology and rare earth.
Tight old crop supplies and lingering concerns over the new crop hovered over canola futures. However, mid-week rains on the Prairies could help to alleviate those concerns.
The November canola contract continued to stay above its major moving averages, further underpinning the oilseed’s values.
Manitoba reported its spring planting is virtually complete, with the province’s canola 95 to 100 per cent seeded. Most of the emerged canola is in the four-leaf stage.
The Canadian dollar was slightly higher on Wednesday morning, with the loonie at 73.14 U.S. cents compared to Tuesday’s close of 73.08.
Approximately 8,200 contracts were traded by 8:39 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Jul 711.60 up 2.40 Nov 692.70 up 1.50 Jan 699.40 up 1.00 Mar 705.40 up 1.20
