By Glen Hallick, MarketsFarm
WINNIPEG, March 15 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mixed at midday Monday.
“The old crop still has a little bit of life in it, but it’s lagging the U.S. [markets],” a Winnipeg-based trader commented, noting that canola remained relatively cheap to comparable edible oils.
“The old crop needs to get more expensive in relative terms. Its products are still too attractively priced overall,” he added.
The main issues for canola being the tightening supplies and the need to generate price rationing.
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“We have to work pretty hard over the next few months to kill demand for canola,” the trader emphasized.
New crop canola was also attractively priced, with the crush margins at extremely high levels, the trader said.
The Canadian dollar remaining slightly over 80 U.S. cents weighed on values somewhat, he said. The loonie was at 80.01 U.S. cents after closing on Friday at 80.04.
Approximately 8,650 canola contracts were traded as of 10:41 CDT.
Prices in Canadian dollars per metric tonne at 10:41 CDT:
Price Change
Canola May 802.60 up 1.50
Jul 752.00 up 1.60
Nov 633.80 up 0.50
Jan 633.80 dn 1.20
