By Glen Hallick, MarketsFarm
WINNIPEG, Feb. 18 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola was stronger at midday Thursday, as contracts hit new highs in what has become its own market, according to a Winnipeg-based trader.
“It’s shrugged off any downward movement in the United States markets. It’s not even looking at that anymore. It’s just a matter of money flowing into canola,” he explained.
The Chicago soy complex was lower, with soyoil down by more than a quarter of a cent per pound. There were steep losses in Malaysian palm oil as well, but moderate increases in European rapeseed.
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Another feature remains the soon-to-expire March contract, the trader said.
“Some players are trying to squeeze the shorts. Other longs are trying to get out of the March while there’s still some volume. Both sides are at risk because the volume keeps going lower and lower,” he commented.
The trader said there is price rationing in the market, as commercials have been scrambling to acquire canola. Cash prices have pushed up to C$17.25 per bushel for March delivered.
Meanwhile the crush margins for old crop “have absolutely disintegrated,” but the November crush margins “are still spectacular,” he stated.
The Canadian dollar was relatively steady at midday, with the loonie at 78.71 U.S. cents compared to Wednesday’s close of 78.67.
Approximately 15,900 canola contracts were traded as of 10:44 CST.
Prices in Canadian dollars per metric tonne at 10:44 CST:
Price Change
Canola May 730.00 up 12.40
Jul 695.40 up 9.80
Nov 588.70 up 10.00
Jan 588.90 up 9.30
