By Glen Hallick, MarketsFarm
WINNIPEG, May 27 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were bouncing back at midday Wednesday after a number of days of losses. The rise in prices saw July reach the daily limit of C$30 per tonne earlier in the session.
“There’s nothing more bullish than an oversold bull,” a Winnipeg-based trader quipped, noting canola was overdone to the downside.
He said the overnight frosts on the Prairies also contributed to the turnaround in canola prices.
Support was also coming from a stronger Chicago soy complex and gains in European rapeseed. Lower Malaysian palm oil values added some pressure.
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A stronger Canadian dollar was tempering those gains in canola. The loonie climbed to 82.76 U.S. cents compared to Wednesday’s close of 82.58.
Minnesota-based Ceres Global Ag Corp. recently announced its plans to build a C$350 million canola crushing plant near Northgate, Sask. The plant is to be operation in 2024 and will be able to crush 1.1 million tonnes of canola per year. This marked the fourth canola plant project in the province, as Cargill, Viterra and Richardson International each announced their respective plans to expand their crushing facilities.
Approximately 11,550 canola contracts were traded as of 10:36 CDT.
Prices in Canadian dollars per metric tonne at 10:36 CDT:
Price Change
Canola Jul 889.50 up 27.20
Nov 704.40 up 13.10
Jan 703.10 up 13.40
Mar 686.70 up 6.00
