ICE Canada Morning Comment: More gains for canola
Spillover support from most comparable oils
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures continued to climb higher Wednesday morning, on solid end-user demand and chart-based positioning.
Canola’s recovery pushed the May contract closer to its 20-day moving average, while it remained well back of its other major averages.
Additional support for the Canadian oilseed came from gains in Chicago soybeans and soyoil, plus European rapeseed and Malaysian palm oil. Slight losses in Chicago soymeal attempted to put something of a damper on the increases. Upticks in crude oil spilled over into the vegetable oils.
Meanwhile, tariff issues with China regarding canola meal and oil loomed over the canola market, along with the ongoing uncertainty surrounding United States levies set to come into effect on April 2.
The Canadian dollar was higher on Wednesday morning, with the loonie at 70.09 U.S. cents, compared to Tuesday’s close of 69.95.
Approximately 12,350 contracts were traded by 8:34 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola May 585.00 up 6.80 Jul 592.60 up 4.60 Nov 594.10 up 3.60 Jan 600.20 up 2.10
