ICE Canola Midday: Futures swinging upward

By Glen Hallick

Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were higher late Friday morning, as the March contract held above its major moving averages including the 200-day.

Upticks in Chicago soyoil and Malaysian palm oil helped to bolster canola, while declines in soybeans and soymeal plus most European rapeseed contracts limited the increases. Crude oil eased back, adding a little bit more pressure on the vegetable oils.

The strong likelihood of tighter supplies underpinned canola. The Canadian Grain Commission reported the oilseed’s exports for the week ending Jan. 19 of 202,500 tonnes were little changed from the previous week. Domestic use bumped up to 229,900 tonnes.

An analyst suggested canola’s saving grace when it comes to the Section 45Z biofuel tax credits in the United States, might be the Trump administration reverting to previous requirements. The changes made earlier this month excluded canola.

The Canadian dollar was higher at mid-session Friday, with the loonie at 69.78 U.S. cents compared to Thursday’s close of 69.58.

Approximately 27,500 canola contracts were traded as of 10:32 am CST, with prices in Canadian dollars per metric tonne:

Price     Change

Canola          Mar     640.60    up  3.20

May     649.60    up  3.30

Jul     654600    up  2.50

Nov     641.00    up  1.90