By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 27 (MarketsFarm) – The ICE Futures canola market was mixed at midday Wednesday, hitting fresh contract highs in the most active front months.
A Winnipeg-based trader described canola as being in “a game all by itself,” with speculative money the primary reason behind the rally in the nearby contracts.
While tight supplies do remain supportive, canola is already priced high enough to ration demand and the trader said there was no reason for the futures to keep moving higher from a fundamental standpoint.
Chicago Board of Trade soybeans were stronger at midday, but soyoil was lower which put some pressure on canola. A firmer tone in the Canadian dollar also weighed somewhat on values.
About 14,000 canola contracts traded as of 10:37 CDT.
Prices in Canadian dollars per metric tonne at 10:37 CDT:
Price Change
Canola Nov 978.20 up 16.80
Jan 960.60 up 6.00
Mar 936.10 dn 0.20
May 905.70 dn 3.00
