By Glen Hallick, MarketsFarm
WINNIPEG, May 8 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Wednesday, continuing on the rally that began yesterday.
A Winnipeg-based trader said it’s tough to pinpoint exactly what is pushing canola prices upwards. One explanation he cited was a seeding rally.
“Everyone is out there seeding and there are just not a lot of deliveries,” the trader said.
Also, he noted bids have been down for a couple of months and simply due to improve.
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Canada’s action at the World Trade Organization on Tuesday has provided something of a psychological boost. Canada challenged China to produce its evidence that its canola imports from Canada were contaminated.
But until the ongoing dispute between Canada and China is resolved there isn’t much to sustain increased prices, the trader said.
Added to that are large stocks according to Statistics Canada, with plenty of canola still in farmers’ bins.
Approximately 9,500 canola contracts were traded as of 10:40 CDT.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Price Change
Canola Jul 440.00 up 1.70
Nov 453.60 up 2.20
Jan 460.00 up 2.20
Mar 465.90 up 2.30
