By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 13 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were pushing higher at midday Monday, in a session that has seen choppy trading.
“The beanoil has been plunging, but canola has been able to hold. It’s under pressure, but holding,” commented a trader, adding a weaker Canadian dollar has helped to underpin canola.
The loonie was weaker at 78.05 U.S. cents compared to Friday’s close of 78.65.
He noted the speculative funds continued to prop up canola, but in doing so they have built up a massive long position. Such could continue into the New Year or the specs could attempt to book profits. If that happens, the trader said canola could easily lose C$100 per tonne very quickly.
Besides declines in the Chicago soy complex, European rapeseed was also lower. However, support was coming from moderate gains in Malaysian palm oil.
Approximately 13,750 canola contracts were traded as of 10:41 CST.
Prices in Canadian dollars per metric tonne at 10:41 CST:
Price Change
Canola Jan 1,013.80 up 8.20
Mar 988.80 up 8.90
May 951.00 up 7.60
Jul 898.80 up 4.80
