ICE Canola Midday: South American weather fueling increases

By Glen Hallick, MarketsFarm

WINNIPEG, Dec. 28 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher at midday Tuesday, as concerns over South American weather dominated the oilseed markets, according to a trader.

He said the outlook is suggesting the rains in Brazil could shift from the north of the country to the central and southern regions. Currently the latter areas, especially the south, are very dry.

“That’s brought in a little bit of selling in the soybeans, but not enough to break it,” the trader commented.
While the canola market was closed on Monday, the Chicago Board of Trade (CBOT) was open and saw a sharp spike in the soy complex. Also yesterday, European rapeseed hit contracts highs.

“Canola has to do a little catching up. We’re still seeing the January a little weak on the liquidation pressures, rolling out of that contract,” he said, noting that trading volumes were pretty good for being in between the holidays.

The Canadian dollar was relatively steady with the loonie at 78.02 U.S. cents, compared to Thursday’s close of 78.05.

Approximately 14,650 canola contracts were traded as of 10:47 CST.

Prices in Canadian dollars per metric tonne at 10:47 CST:

Price Change
Canola Jan 1,012.00 up 2.30
Mar 1,013.90 up 10.20
May 990.80 up 16.10
Jul 946.90 up 18.80