By Marlo Glass, MarketsFarm
WINNIPEG, Dec. 20 (MarketsFarm) – The ICE Futures canola market was steady to slightly lower at midday Friday, amidst thin and choppy trade activity.
Earlier in the week, canola values received a boost from strong trade activity and profit-taking ahead of the holidays. However, that activity has largely tapered off.
Strong domestic crush margins have also been favourable for canola. According to ICE, crush margins for the January contract have remained over C$118 for most of the week.
One trader said, “crushers have been sitting back watching margins get bigger and bigger, and now at year end they’re starting to lock in some of those margins.”
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Weakness in the soy complex on the Chicago Board of Trade dragged down canola values. The trader said that canola remains “cheap and well-supported” in comparison to other vegetable oils.
The Canadian dollar held steady at around 76 U.S. cents, keeping pressure on canola values.
About 16,000 canola contracts traded as of 10:35 CST.
Prices in Canadian dollars per metric tonne at 10:35 CST:
Price Change
Canola Jan 466.20 dn 0.70
Mar 476.40 dn 0.70
May 485.30 dn 1.00
Jul 491.00 dn 0.90
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