By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 27 (MarketsFarm) – ICE Futures canola contracts were steady to higher at midday Friday, but far below as to where prices should be, according to a Winnipeg-based trader.
The trader said that canola prices were about C$4.50 per tonne lower than where they should be on Friday.
“Canola is performing abysmally bad, but at least it’s being dragged higher,” he stated.
The trader also noted “crush margins are in the stratosphere,” which meant canola was cheap as “sources are standing on it, keeping it down.”
As of Dec. 24, the crush margin for January canola topped C$121.00 per tonne, almost twice as much a year ago.
Come the New Year, he expects farmers to sell less and if such happens, it would improve the basis.
The Canadian dollar was stronger at 76.43 U.S. cents, compared to Tuesday’s close of 76.01.
Approximately 10,300 canola contracts were traded as of 10:28 CST.
Prices in Canadian dollars per metric tonne at 10:28 CST:
Price Change
Canola Jan 469.10 up 0.40
Mar 478.80 up 0.80
May 487.70 up 0.50
Jul 494.40 up 0.80
