ICE Midday: July canola rises, new crop steady

Glacier FarmMedia | MarketsFarm – The July contract on the ICE Futures canola market continued its demand-based rally. Meanwhile, the new crop positions were narrowly mixed.

An analyst said while demand for old crop canola needs to slow down, the price outlook is better than originally thought. He estimated 22 million tonnes would be required to meet demand in the next marketing year.

However, biofuel policy in the United States and the possibility of Chinese tariffs on Canadian canola seed are creating uncertainty.

European rapeseed and Malaysian palm oil were up, while Chicago soyoil was down. Crude oil also declined due to a slowdown in Chinese industrial output and Moody’s downgrade of the U.S.’s credit rating.

The Canadian dollar was up more than one-quarter of a U.S. cent compared to Friday’s close.

About 20,000 canola contracts have traded at 10:22 CDT. Prices in Canadian dollars per metric tonne:

Price          Change

Jul 710.70     up  8.00

Nov 674.10     up  0.40

Jan 681.10     dn  0.10

Mar 687.50     dn  0.60