ICE Canola Midday: Oilseed rebalancing with U.S. soy
Lots of uncertainty looms over canola says broker
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were pushing higher late Wednesday morning, despite sharp losses in Chicago soyoil.
“It’s a rebalancing,” said a broker. “(Canola) lagged the soy market by almost $100 per tonne over the last two weeks. Eventually that will reverse as the spreaders will push it so far.”
“Today, they’re selling beanoil and buying canola,” he added.
The broker cautioned that canola “is still facing some extreme uncertainties” pointing to the exclusion of canola among the recent changes the United States government made to biofuel tax credits. He also suggested the new Trump administration could be looking to dismantle the U.S. biofuel industry.
The broker said there are ongoing questions surrounding supplies of Canadian canola, with exports and domestic use on pace to outstrip this year’s crop.
Besides the drop in Chicago soyoil, soybeans were lower, but soymeal was on the rise. European rapeseed and Malaysian palm oil were to the downside as well. Modest declines in crude oil put more pressure on the vegetable oils.
The Canadian dollar was a pinch lower at mid-session Wednesday, with the loonie dipping to 69.55 U.S. cents compared to Tuesday’s close of 69.61.
Approximately 26,400 canola contracts were traded as of 10:31 am CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Mar 633.70 up 4.20 May 642.70 up 4.10 Jul 649.00 up 4.40 Nov 636.80 up 4.70
