By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 28 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower at midday Tuesday due to softness in the Chicago soy complex and in crude oil prices, according to a trader.
Canola was higher earlier this morning as it rebalanced from the sharp drop prior to the close of Monday’s session, but the oilseed is “a little erratic,” the trader commented.
“We’re getting close to October now. We need to be prepared for some possible squeeze-type action,” he said, noting the commercials especially want to avoid getting caught short.
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The trader added canola needs fresh news to generate any movement out of being range-bound, trading between C$850 to C$900 per tonne. He suggested the end of the United States harvest or sufficient rain in Brazil could generate some movement.
Nevertheless, the trader stated canola is where it needs to be, “extraordinarily expensive and extraordinarily high” to kill demand because of a very tight supply situation.
The Canadian dollar was lower, which provided a measure of support for canola. The loonie at 78.84 U.S. cents compared to Monday’s close of 79.13.
Approximately 13,500 canola contracts were traded as of 10:36 CDT.
Prices in Canadian dollars per metric tonne at 10:36 CDT:
Price Change
Canola Nov 883.50 dn 0.10
Jan 873.80 dn 1.90
Mar 864.00 dn 3.20
May 844.00 dn 6.50
