ICE Canola Midday: Prices on the rise
Price rationing still needed
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were higher by late Tuesday morning. An analyst said the oilseed is likely to trade sideways until planting conditions on the Prairies are clear.
He added that some price rationing is still needed as Canada is running out of canola. Some basis levels have improved as a means to extract more canola from farmers.
There are thoughts within the trade that Statistics Canada could be one million tonnes short on its 2024/25 canola production estimate, maybe by as much as 1.50 million tonnes.
Canola also was deriving support from gains in Chicago soybeans and soymeal as well as Malaysian palm oil. However, pressure was coming from losses in Chicago soyoil and European rapeseed. Increases in crude oil underpinned the vegetable oils.
The Canadian dollar was virtually unchanged by mid-session Tuesday with the loonie at 72.35 U.S. cents.
Approximately 23,300 canola contracts were traded as of 10:22 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola May 665.10 up 6.10 Jul 672.50 up 7.10 Nov 646.40 up 3.00 Jan 653.10 up 3.00
