ICE Canola Midday: Canadian oilseed nudging upward
Markets concerns about enough supply underpinning values
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were mostly higher in choppy trading at midday Wednesday, after posting losses earlier.
A broker said support for the Canadian oilseed comes from market concerns about the country’s canola crop being smaller than the 18.98 million tonnes projected by Statistics Canada. The federal agency is scheduled to release its updated production estimate in December.
The broker added that China appears to be behind a lot of the buying, in an effort to acquire as much canola as possible ahead of likely sanctions down the road.
Support for canola was also coming from sharp hikes in Malaysian palm oil, which continues to set new contract highs, plus gains in Chicago soybeans. Meanwhile, soymeal was narrowly mixed.
Losses in Chicago soyoil and European rapeseed were limiting the advances in canola. Declines in crude oil applied pressure on the vegetable oils.
By late Wednesday morning, the Canadian dollar stepped back to 72.21 U.S. cents compared to Tuesday’s close of 72.33.
Approximately 46,700 canola contracts were traded as of 10:41 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 632.60 dn 0.10 Jan 645.00 up 0.50 Mar 655.60 up 0.30 May 663.00 up 0.70
