By Glen Hallick, MarketsFarm
WINNIPEG, May 7 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Tuesday, getting an overdue bounce.
A major reason for it has been the reopening of Japan’s markets after a week-long holiday, according to a Winnipeg-based trader.
By midday, the July contract leapt C$5.50 at C$437.90 per tonne. The November contract gained C$4.50 at C$450.40 per tonne.
The trader said there was spillover in canola prices from increases in palm oil and rapeseed.
With Canadian farmers are now very busy planting, they are making few deliveries, he added.
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Also helping with the uptick was the lower Canadian dollar, which was about 74.20 U.S. cents so far on Tuesday.
In light of the gains, Canadian canola growers are faced with a growing carryover. Statistics Canada reported in its Grain and Oilseed Stocks of March 31, there was a carryover of a little more than 10 million tonnes of canola, an increase of 956,000 tonnes compared to last year.
However the trader said the numbers are within the market’s expectations and have had no effect on bids today.
Approximately 12,400 canola contracts were traded as of 10:32 CDT.
Prices in Canadian dollars per metric tonne at 10:32 CDT:
Price Change
Canola Jul 437.90 up 5.50
Nov 450.40 up 4.50
Jan 457.10 up 4.90
Mar 463.00 up 5.10
