By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures turned lower on Thursday morning, despite spillover from increases in the Chicago soy complex.
Gains in European rapeseed and Malaysian palm oil also lent support to canola. Crude oil was moderately lower, putting pressure on the vegetable oils.
The January canola contract returned above its major moving averages after dipping below its 20- and 200-day averages.
Canola crush margins bumped up with the January positions close to C$128 per tonne above the futures.
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Canola futures on the Intercontinental Exchange were still reeling on Friday following the release of Statistics Canada’s bearish canola production…
There are concerns in the trade that China could impose some kind of punitive measure against Canadian canola in the next few days. It’s believed China has been buying as much canola as they can before any retaliation against Canada for hiking tariffs on Chinese-made electric vehicles, steel and aluminum.
The Canadian dollar pushed higher on Thursday morning with a sharp drop in the U.S. dollar ahead of the Federal Reserve’s interest rate announcement this afternoon. The loonie rose to 72.09 U.S. cents compared to Wednesday’s close of 71.76.
Approximately 10,500 contracts were traded by 8:42 CST and prices in Canadian dollars per metric tonne were:
Price Change Canola Jan 645.40 dn 2.20 Mar 656.60 dn 2.60 May 665.30 dn 1.60 Jul 670.80 dn 0.20
