ICE Canola Midday: Climbing upward, but gains slipping
Support from soybeans disappears
WINNIPEG – Intercontinental Exchange (ICE) canola futures were higher at midday Wednesday, but as with yesterday’s trading, those gains were fading.
“This only gets us back to the previous highs from a few days ago,” an analyst commented.
Support for canola was coming from upticks in Chicago soyoil, but as soybeans turnaround to fall back at mid-morning, that pulled the Canadian oilseed away from its bigger increases. Meanwhile soymeal was already lower. There was additional support from modest gains in European rapeseed and Malaysian palm oil. Global crude oil prices were on the upswing, with spillover finding its way into the vegetable oils.
The analysts suggested that should canola “continue to goose soyoil” it could push to the C$800 per tonne range.
While Prairie temperatures are expected to remain in the low to mid 20’s degrees Celsius, the eastern half has been forecast to receive thunderstorm later in the week. However, the western half is to remain on the dry side.
The Canadian dollar was lower at mid-Wednesday morning, as the loonie slips to 75.40 U.S. cents compared Tuesday’s close of 75.65.
Approximately 23,800 canola contracts were traded as of 10:40 CDT.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Price Change Canola Nov 746.50 up 7.00 Jan 751.20 up 6.70 Mar 755.10 up 6.50 May 760.00 up 7.30
