By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 22 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were on the rise at midday Tuesday, in another round of prices reaching new highs.
Despite little support from the Chicago soyoil complex, the continuing demand for canola was providing support, according to a Winnipeg-based trader.
“Exports are running high and the crush is running close to its highest level,” he commented.
“The tightness in the visible supply is going to show up at some point,” the trader added.
With the canola carryout for 2020/21 projected to be 1.2 million tonnes, there are concerns in the market that demand is outstripping supply. Price rationing is believed to be pushing up values as well.
At midday the Canadian dollar sank to 77.41 U.S. cents, compared to Monday’s close of 77.83.
Approximately 14,400 canola contracts were traded as of 10:34 CST.
Prices in Canadian dollars per metric tonne at 10:34 CST:
Price Change
Canola Jan 637.90 up 3.60
Mar 627.90 up 2.10
May 612.80 up 1.30
Jul 596.10 up 1.20
