ICE canola continues higher in choppy trade

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Published: 13 hours ago

Glacier FarmMedia — ICE Futures canola contracts were stronger at midday Thursday, but off their session highs in choppy activity.

  • Gains in crude oil amid the ongoing conflict in the Middle East remained supportive for global vegetable oil markets. Chicago soyoil, European rapeseed and Malaysian palm oil were all higher on the day.
  • Widening canola crush margins contributed to the strength in canola, with the strong margins a sign that canola seed remains cheap relative to its product values despite the rally. Nearby margins were nearing C$300 per tonne above the futures, rising by roughly C$75 over the past month.
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  • The war has also caused fertilizer prices to climb higher, which may sway some intended canola acres out of the input-intensive crop into other options, said a trader.
  • “It’s hard to make sense of it,” added the trader on volatile markets, noting that futures were showing kneejerk reactions to any war-related news.
  • An estimated 44,200 canola contracts traded as of 11:00 CDT.

Prices in Canadian dollars per metric tonne at 11:00 CDT:

Canola            May   737.00    up  3.70

                  Jul   746.10    up  3.60

                  Nov   731.20    up  3.60

                  Jan   736.20    up  3.60

Access the latest futures prices at https://www.producer.com/markets-futures-prices/

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