By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 17 (MarketsFarm) – The ICE Futures canola market was firmer at midday Tuesday, seeing a modest recovery after Monday’s drop to fresh contract lows.
Gains in the Chicago Board of Trade soy complex, a lack of aggressive farmer selling, and weakness in the Canadian dollar contributed to the strength in canola, according to a trader.
“Specs are also less aggressive on the sell side, which could be adding support.”
The Canadian dollar was down by roughly three-quarters of a cent relative to its United States counterpart while soyoil was up by about half a cent per pound. That combination helped crush margins improve.
However, underlying concerns over the COVID-19 pandemic remained a bearish influence in the background.
About 14,000 canola contracts traded as of 10:23 CDT.
Prices in Canadian dollars per metric tonne at 10:23 CDT:
Price Change
Canola May 452.10 up 4.10
Jul 458.60 up 3.40
Nov 465.00 up 3.00
Jan 472.50 up 3.50
