By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 2 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were moving higher at midday Thursday. Support was coming from not only comparable oils, but also on news from Canadian National Rail, according to a trader.
With the latest deluge of rain in southern British Columbia, CN closed its Kamloops to Vancouver corridor and stated it would not reopen until the weekend. The railway also said it’s redirecting some trains to Prince Rupert.
Additional support for canola came from strong upticks in European rapeseed as well as gains in the Chicago soy complex. Meanwhile, there were moderate declines in Malaysian palm oil.
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Positioning ahead of tomorrow’s production report from Statistics Canada was also a feature. The trader said it’s somewhat uncertain if “small crops are going to get smaller.” However, expectations have been pointing towards further cuts to canola, wheat and other major crops.
The trader noted there’s volatility in the crude oil market. Currently global benchmark prices were higher, which lent support to edible oils.
The Canadian dollar was lower, with the loonie at 78.06 U.S. cents compared to Wednesday’s close of 78.27.
Approximately 8,850 canola contracts were traded as of 10:37 CST.
Prices in Canadian dollars per metric tonne at 10:37 CST:
Price Change
Canola Jan 1,011.10 up 16.80
Mar 978.90 up 11.60
May 937.00 up 6.80
Jul 887.60 up 3.20
