ICE Midday: Canola rises again on Tuesday

Glacier FarmMedia MarketsFarm – The ICE Futures canola market continued to expand its gains on Tuesday with help from most comparable oils.

Chicago soyoil and European rapeseed were both on the rise, while crude oil was also higher as traders await the United States Federal Reserve’s key interest rate decision on Wednesday. However, Malaysian palm oil was lower after India implemented a new 20 per cent import tax on edible oils.

One analyst had heard that a grain company was particularly aggressive in buying canola recently and added if the canola market’s current momentum could bring the November price up to C$600 per tonne sooner than later.

The Canadian dollar was steady compared to Monday’s close. Statistics Canada reported today the country’s annual inflation rate dropped to two per cent in August, the Bank of Canada’s target rate.

About 19,700 contracts have traded at 10:18 CDT. Prices in Canadian dollars per metric tonne:

Price          Change

Nov 573.50     up  8.80

Jan 586.40     up  8.10

Mar 597.80     up  7.10

May 605.70     up  5.90