ICE Canola Midday: Attempting a recovery
Hard to get bead on jumbled market says trader
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures continued to pull back in most contracts by midday Friday, but flashes of a recovery were being seen.
Canola was getting pressure from losses in Chicago soyoil, European rapeseed and Malaysian palm oil. Support was coming from strong gains in Chicago soybeans and soymeal. Small upticks in crude oil provided something of an upward direction to the oilseeds.
A trader commented canola and the oilseed markets in general were in a “jumble” with it being “difficult to get a bead on things.”
He added that despite the positive week canola had, there was still a good amount of uncertainty, pointing to China’s investigation in alleged canola dumping by Canada and the grain workers’ strike at the Port of Vancouver.
The trader also stressed the size of the canola crop on the Prairies was unclear despite recent the reports issued by Statistics Canada and this week’s report from Agriculture and Agri-Food Canada. He stated a larger-than-expected carryover for canola was likely.
By late Friday morning, the Canadian dollar fell to 74.11 U.S. cents compared to Thursday’s close of 74.22.
Approximately 30,400 canola contracts were traded as of 10:31 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 599.90 dn 1.00 Jan 613.70 unchanged Mar 624.70 up 0.40 May 631.80 up 0.40
