By Glen Hallick, MarketsFarm
WINNIPEG, March 4 (MarketsFarm) – ICE Futures canola contracts were higher on Wednesday as the markets are becoming more volatile due to the COVID-19 coronavirus outbreak, according to a Winnipeg-based analyst.
Although the Bank of Canada cut its key interest rate by a half-point to 1.25 per cent this morning, the analyst believes it likely won’t have a direct effect on canola. Any influence from the central bank’s move would likely come if the Canadian dollar were to stay between 74.50 to 75.00 U.S. cents.
So far today, the Canadian dollar was lower at 74.61 U.S. cents, compared to Tuesday’s close of 74.83.
Canola was getting support from gains in Chicago soyoil, European rapeseed and Malaysian palm oil.
Approximately 16,500 canola contracts were traded as of 10:30 CST.
Prices in Canadian dollars per metric tonne at 10:30 CST:
Price Change
Canola May 467.30 up 0.70
Jul 475.30 up 1.30
Nov 485.00 up 2.20
Jan 491.60 up 2.30