ICE Canada Morning Comment: Old crop canola pushing higher
Pressure from most comparable oils limiting gains
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were mixed on Tuesday morning with gains in the front months and losses in the new crop positions.
The Canadian oilseed continued to be supported by bullish technical signals, with the most traded July contract still well above its moving averages. Also, tightening old crop supplies will lead to price rationing.
While additional support came from increases in European rapeseed, losses in the Chicago soy complex and Malaysian palm oil weighed on canola values. Small declines in crude oil pressured the vegetable oils.
The Canadian dollar virtually unchanged on Tuesday morning, with the loonie at 72.02 U.S. cents.
Approximately 11,200 contracts were traded by 8:39 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola May 665.20 up 3.60 Jul 671.90 up 3.20 Nov 647.00 dn 1.30 Jan 653.40 dn 1.00
