ICE canola turning higher at midday Wednesday

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was posting small gains at midday Wednesday, as uncertainty over possible tariffs in the United States countered support from gains in soyoil.

The U.S. is the primary destination for Canadian canola oil exports, and the 25 per cent tariffs threatened by incoming U.S. President Donald Trump would seriously cut into that movement.

However, a rally in Chicago soyoil pulled canola above unchanged at midday after earlier losses.

Supportive chart signals contributed to the eventual gains, as the March contract held above its 200-day moving average.

A merger between Bunge Ltd. and Glencore-backed Viterra was cleared by the Canadian government on Tuesday. Conditions of the approval include Bunge divesting from six grain elevators in Western Canada and a binding commitment from Bunge to invest C$520 million in the country over five years.

An estimated 27,500 canola contracts traded as of 10:52 CST.

Prices in Canadian dollars per metric tonne at 10:52 CST:

Canola            Mar   643.30    up  1.70

May   652.80    up  2.00

Jul   659.20    up  2.40

Nov   639.70    up  2.60