By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 20 (MarketsFarm) – The ICE Futures canola market was stronger at midday Tuesday, setting fresh contract highs in many months as both speculators and end users were bidding up the market.
“Everyone is a little jittery,” said a trader on the underlying market sentiment.
He said fund traders were adding to their large long positions, which in turn was making end users nervous about missing out on cheaper prices.
“They can’t afford to watch the market get away from them,” he added.
Tight old crop supplies and dryness concerns for the new crop remained supportive from a fundamental standpoint, with a rally in the Chicago soy complex and weakness in the Canadian dollar also supportive on Tuesday.
About 16,500 canola contracts traded as of 10:46 CDT.
Prices in Canadian dollars per metric tonne at 10:46 CDT:
Canola May 854.40 up 22.10
Jul 797.60 up 19.80
Nov 675.10 up 14.50
Jan 673.90 up 13.60
Futures Prices as of April 20, 2021
Prices are in Canadian dollars per metric ton