By Glen Hallick, MarketsFarm
WINNIPEG, Oct. 19 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher at midday Tuesday, with more deferred positions seeing the largest gains.
“There’s the debate about how dry it is in Western Canada, the fact that seed supplies are limited [and] the fact that other competing crops are extremely profitable,” explaining a trader.
As well, he noted that crushers and other buyers have become concerned about canola supplies and they’re looking to purchase what they can now with the expectation that prices will continue to increase.
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Another major feature continued to be the rolling out of the November contract into January, by both commercials and speculators.
Additional support for canola was coming from gains in the Chicago soy complex, although increases in soyoil were slight. Strong upticks in European rapeseed bolstered the Canadian oilseed, while there were slight decreases Malaysian palm oil.
With weakness in the United States dollar, the Canadian dollar was higher, which also weighed on canola values. The loonie pushed to 80.95 U.S. cents compared to Monday’s close of 80.81.
Approximately 18,650 canola contracts were traded as of 10:39 CDT.
Prices in Canadian dollars per metric tonne at 10:39 CDT:
Price Change
Canola Nov 929.00 up 7.90
Jan 924.60 up 9.30
Mar 912.00 up 11.90
May 889.00 up 13.80
