ICE Canola Midday: Futures reverse course with gains
Dry conditions persisting
By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures were higher late Tuesday morning, despite losses in the Chicago soy complex.
“We sold off hard and there’s still a tight balance sheet,” said a broker.
Canola had dropped significantly over the last few sessions. Also, Canada’s canola exports and domestic use has been higher than expected.
Additional support for canola came from gains in Malaysian palm oil and European rapeseed. A modest upswing in crude oil further underpinned the vegetable oils.
Although the Canadian Prairies have received some rain, with more in the region’s forecast, dry conditions still persist. That’s leading to some concerns over the forthcoming crop.
The Canadian dollar slipped back at mid-session Tuesday, with the loonie at 73.08 U.S. cents compared to Monday’s close of 73.23.
Approximately 26,400 canola contracts were traded as of 10:43 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 706.50 up 9.70 Jan 714.70 up 9.70 Mar 720.00 up 9.50 May 724.90 up 9.50
