ICE Canola Midday: Stronger oilseeds providing a boost
But turnaround in crude oil leads to fading veg oil prices
By Glen Hallick
Glacier Farm Media MarketsFarm –Intercontinental Exchange canola futures were higher at midday Monday, buoyed by a rally in the oilseeds.
There were sharp gains in the Chicago soy complex and in European rapeseed with more modest increases for Malaysian palm oil. Crude oil prices turned pinch lower taking some support away from the vegetable oils.
The November canola contract poked above C$600 per tonne earlier in Monday’s session. An analyst commented that if the November doesn’t close at that level that would be seen as a “technical failure.”
He added that adverse conditions in other parts of the world are supportive of Chicago soybeans with spillover finding its way into canola.
As for the Prairies, the analyst said the eastern half is to be warmer than normal in the coming days with the western half near normal.
The Canadian dollar was advancing by late Monday morning with the loonie rising to 74.12 U.S. cents compared to Friday’s close of 73.72.
Approximately 35,000 canola contracts were traded as of 10:35 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 591.50 up 2.60 Jan 603.10 up 4.00 Mar 614.90 up 5.40 May 622.90 up 5.00
