ICE Canada Morning Comment: Rally continues
Tightening supplies guides prices higher
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures continued on the upswing Thursday morning as the old crop contracts hover over either side of their resistance levels.
With exports and domestic use of canola ahead of last year’s pace, tightening supplies will ration demand. However, there are thoughts in the trade that Statistics Canada may have underestimated the 2024/25 canola harvest by approximately one million tonnes.
Additional support for the Canadian oilseed was coming from increases in the Chicago soy complex and Malaysian palm oil, while European rapeseed was mixed. Gains in crude oil spilled over to underpin the vegetable oils.
The Canadian dollar was higher on Thursday morning, with the loonie at 72.11 U.S. cents compared to Tuesday’s close of 71.99.
The markets in Canada and the United States will be closed tomorrow for Good Friday.
Approximately 16,750 contracts were traded by 8:38 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola May 677.70 up 3.90 Jul 684.60 up 3.90 Nov 654.70 up 2.00 Jan 660.60 up 2.30