ICE canola correcting higher to end week

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was higher at midday Friday, taking back some of Thursday’s losses as a turn higher in the Chicago soy complex provided spillover support.

Ideas the losses in canola were overdone contributed to the gains, with the weakness also likely bringing in some fresh end-user buying interest.

Canada exported 203,000 tonnes of canola during the week ended Jan. 12, with crop-year-to-date exports of 4.9 million tonnes running 85 per cent ahead of the year-ago pace, according to Canadian Grain Commission data.

However, the fact canola was not included in interim rules on biofuel feedstock guidelines from the United States Department of Agriculture announced earlier in the week remained a bearish factor overhanging the market.

An estimated 32,800 canola contracts traded as of 10:40 CST.

Prices in Canadian dollars per metric tonne at 10:40 CST:

Canola            Mar   621.70    up 14.90

May   630.70    up 14.30

Jul   638.00    up 13.20

Nov   626.60    up  9.80