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ICE Midday: Canola showing strength

| 1 min read

Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were surging in the middle of Monday trading due to optimism over the resumption of trade talks with the United States. This was despite a stronger Canadian dollar and weakness in most comparable oils.

An analyst said canola found support after moving down to the 50-day average. Dry weather in some areas on the Prairies as well as questions over canola’s place in new United States biofuel mandates also underpinned gains.

Chicago soyoil was higher, but European rapeseed and Malaysian palm oil were lower. Crude oil was also showing declines after reports said OPEC+ is considering raising its daily output starting in August.

The Canadian dollar was up more than one-tenth of a U.S. cent compared to Friday’s close. Canadian markets will be closed on Tuesday due to Canada Day.

The U.S. Department of Agriculture will release its quarterly stocks and acreage reports later this morning. There will be no trading in the U.S. on Friday due to Independence Day.

About 26,200 canola contracts have traded at 10:12 CDT. Prices in Canadian dollars per metric tonne:

Price          Change

Nov 714.60     up 21.70

Jan 722.70     up 20.60

Mar 730.00     up 20.20

May 736.10     up 19.60