ICE Canola Midday: ‘Routine fluctuations’ likely behind turnaround
'Crops are looking awfully good' says trader
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures turned stronger at midsession Thursday, after three days of sharp losses.
“I’m not sure if there’s any big driver today other than routine fluctuations,” a trader surmised about the canola’s turnaround.
“[Soyoil] is up but palm oil is not moving very much. It’s staying pretty subdued and European rapeseed is actually lower today,” he added.
The trader noted the heat this week across Western Canada has certainly benefitted the region’s crops.
“There are a lot of acres, and in Saskatchewan in particular, that don’t usually yield very well, but those crops are looking awfully good,” he commented, stressing it’s still early.
“There are lots of ways the weather could swing yet,” he added, noting the markets could become jittery about just that in the weeks to come.
In the meantime, increases in crude oil spilled over into the vegetable oils to further underpin their values.
The Canadian dollar was virtually unchanged at late Thursday morning, with the loonie at 73.41 U.S. cents.
Approximately 26,450 canola contracts were traded as of 10:44 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 624.00 up 6.10 Jan 633.30 up 5.70 Mar 640.80 up 5.00 May 648.40 up 5.80
