ICE Canola Midday: Overdone losses fueling increases
Canola more competitive after last week's tumble
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures continued pushing higher late Wednesday morning, in what could be the third day in a row of increases.
A trader said canola regaining some of its lost strength because last week’s tumble after China announced coming tariffs on its canola meal and oil imports was overdone. He suggested that despite those hard losses, canola is now more competitive on the global market.
Support for canola also came from upticks in European rapeseed and Malaysian palm oil. However, there’s pressure on the Canadian oilseed from declines in the Chicago soy complex. Increases in crude oil underpinned the vegetable oils.
The Canadian dollar was lower by mid-session Wednesday with the loonie at 69.80 U.S. cents, compared to Tuesday’s close of 69.93.
Approximately 40,000 canola contracts were traded as of 10:39 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola May 581.50 up 7.30 Jul 591.20 up 5.30 Nov 595.40 up 3.70 Jan 605.80 up 6.30
