By Glen Hallick, MarketsFarm
WINNIPEG, July 13 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were higher at midday Tuesday, but those gains have been reduced due to profit-taking.
The November and January positions peaked at the expanded C$60 per tonne daily limit overnight, hitting new contract highs including C$949 per tonne for the November. A Winnipeg-based trader said it’s likely that price will hold for a while.
“Canola did its job, it got extremely expensive,” he commented.
The above normal temperatures couple with extreme dryness across much of the Prairies is set to cut deeply into projected canola yields. That in turn has increased worries over an already very tight supply situation.
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Additional support came from a higher Chicago soy complex, along with gains in European rapeseed and Malaysian palm oil.
A lower Canadian dollar was also supportive of the oilseed. The loonie was at 79.85 U.S. cents compared to Monday’s close of 80.19.
Approximately 22,000 canola contracts were traded as of 10:28 CDT.
Prices in Canadian dollars per metric tonne at 10:28 CDT:
Price Change
Canola Nov 913.10 up 24.10
Jan 903.50 up 22.20
Mar 888.60 up 19.20
May 871.70 up 22.60
