By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 26 (MarketsFarm) – The ICE Futures canola market was stronger at midday Wednesday, hitting fresh highs in the front months as concerns over tightening supplies remained supportive.
“If we keep exporting and crushing the way we are, we’ll run out (of canola,” said a trader accounting for some of the strength in the market.
The nearby November contract was trading above C$715 per tonne at midday, hitting levels not seen since 2008.
Weakness in the Canadian dollar, which was down by roughly half-a-cent relative to its United States counterpart, and gains in Chicago Board of Trade soyoil futures were also supportive.
However, canola outpaced the product values to the upside and was said to be looking overbought as crush margins deteriorated.
New crop contracts also lagged the front months to the upside.
About 21,000 canola contracts traded as of 10:52 CST.
Prices in Canadian dollars per metric tonne at 10:52 CST:
Price Change
Canola Mar 715.50 up 22.30
May 677.80 up 13.90
Jul 652.00 up 9.20
Nov 555.00 up 1.70
