By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were very narrowly mixed at midday Thursday, in what an analyst called “sideways, featureless trade.”
The analyst noted much of the recent support for canola has been coming from European rapeseed, which is on the rise today along with Malaysian palm oil. Meanwhile, the Chicago soy complex was grinding lower, putting pressure on the Canadian oilseed.
Despite the heightened tensions throughout the Middle East, threatening oil supplies, global crude prices were modestly higher, which lent support to vegetable oils.
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The analyst suggested Australian canola was beginning to wane as its influx on the world market was starting to recede, taking some pressure off Canadian canola. Otherwise, he stressed there wasn’t much in the way of compelling data to move the markets, with the massive South American harvest already factored into prices.
He said he expects the canola to remain largely rangebound until the United States Department of Agriculture issues its outlook for 2024 next month. The USDA’s forecast will affect the soy complex, which in turn influences canola.
The Canadian dollar was slightly higher at mid-Wednesday morning with the loonie at 74.05 U.S cents, compared to Wednesday’s close of 73.95.
Approximately 13,700 canola contracts were traded as of 10:26 CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Mar 627.70 up 1.00 May 634.00 up 0.50 Jul 638.80 dn 0.10 Nov 637.30 dn 0.20
