ICE Canola Midday: Touching on recent contract highs
Price rationing inevitable says analyst
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures continued higher late Thursday morning. The July contract touched its resistance level of C$690 per tonne earlier in the session but has inched away since then.
An analyst said he expects the July contract to climb to C$700/tonne.
“As long as we don’t hear bad news from China,” he said.
Presently, China has 100 per cent tariffs on its imports of Canadian canola oil and meal but not seeds.
The analyst noted canola exports to the European Union so far this marketing year have exceeded 700,000 tonnes from about 100,000 this time last year.
He stated that price rationing of canola is inevitable.
The Canadian oilseed was also getting support from increases in Chicago soybeans and soyoil, Malaysian palm oil and most European rapeseed contracts. Crude oil was virtually unchanged, offering little direction to the vegetable oils.
The Canadian dollar eased back by mid-session Thursday with the loonie at 72.01 U.S. cents compared to Wednesday’s close of 72.09.
A reminder that May options expire on Friday and their first notice day is April 30.
Approximately 27,500 canola contracts were traded as of 10:47 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola May 686.10 up 10.10 Jul 691.50 up 9.10 Nov 659.80 up 6.90 Jan 664.00 up 5.70
