By Glen Hallick, MarketsFarm
WINNIPEG, July 17 (MarketsFarm) – ICE Futures canola contracts were higher at midday Friday due to strength in vegetable oils.
Chicago soyoil was up by about a half cent per pound, along with gains in European and Chinese rapeseed.
“Globally the veg oil market is driving the oilseed market,” a Winnipeg-based trader commented.
Also, he pointed to heavy farmer selling of canola in the weekly report from the Canadian Grain Commission. For the week ended July 12, producer deliveries were 496,500 tonnes.
“We’re definitely seeing some bin sweeping from the farmers,” the trader quipped.
The CGC reported exports were 187,800 tonnes and domestic usage was 170,700 tonnes.
The trader suggested canola could challenge last week’s high of C$484.30 per tonne.
The Canadian dollar was at 73.65 U.S. cents, down about two-tenths of cent from yesterday’s close.
Approximately 12,500 canola contracts were traded as of 10:51 CDT.
Prices in Canadian dollars per metric tonne at 10:51 CDT:
Price Change
Canola Nov 482.40 up 3.00
Jan 489.40 up 2.90
Mar 495.10 up 3.10
May 499.30 up 3.40
