ICE Canola Midday: Tighter supplies pushing up prices
Reduced stocks with strong exports, domestic use
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures remained on the rise late Monday morning, with the old crop contracts seeing larger increases while the new crop positions were up slightly.
Tightening canola supplies in Canada contributed to the gains. Statistics Canada reported on Friday that total canola stocks were at 11.38 million tonnes as of Dec. 31, down from 14.09 million the previous Dec. 31. Also, the Canadian Grain Commission noted canola exports and domestic use continued to be on pace to outstrip available supplies.
The March canola remained handily above its major moving averages, further underpinning canola values.
Additional support for canola came from upticks in Malaysian palm oil and most European rapeseed contracts. However, those increases in the Canadian oilseed were tempered by slight losses in the Chicago soy complex. Meanwhile, higher crude oil prices were spilling over into the vegetable oils.
The Canadian dollar stepped back at mid-session Monday, with the loonie slipping to 69.84 U.S. cents compared to Friday’s close of 69.94.
Approximately 41,550 canola contracts were traded as of 10:40 am CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Mar 664.40 up 7.60 May 672.40 up 7.90 Jul 675.90 up 6.80 Nov 649.60 up 2.50
