ICE Canola Midday: Tacking on small gains
Upward movement before Trump sworn in
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were mostly higher at late Monday morning in reduced activity, as the United States markets are closed for Martin Luther King Jr. Day.
Today also marks the swearing in of Donald Trump as U.S. President at 11 am CST. Reports this morning suggested Trump might not impose his tariff plans, rather he could order the matter to be studied by federal agencies.
It also remains uncertain as to which direction the Trump administration will take with the U.S. biofuel industry. There were some changes recently made, but a 60-day review period kicked in, leaving the matter unresolved. Canola was omitted from the changes, which put Canada’s canola oil exports to the U.S. in jeopardy.
That uncertainty help to lead Federated Co-op to put its biodiesel plans on hold for the time being. Co-op together with AGT are to cost share a C$360 million crushing plant in Regina.
Pressure on canola came from declines in European rapeseed while Malaysian palm oil was relatively steady.
Despite today’s gains in canola so far, the March contract remains below its major technical levels.
The Canadian dollar was stronger by mid-session Monday, with the loonie jumping to 69.79 U.S. cents compared to Friday’s close of 69.28.
Approximately 14,100 canola contracts were traded as of 10:31 am CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Mar 618.70 up 2.70 May 627.10 up 1.60 Jul 634.70 up 0.90 Nov 624.30 dn 1.20
