By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 16 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher at midday Monday, likely being pushed upward by speculative fund trading, according to a trader. Although, prices were off from earlier highs.
“I doubt it’s commercial buying at this stage. The commercial money is pretty well set now. They know what the situation is. I doubt they’re caught having to buy all that aggressively at this stage of the game,” the trader explained, nothing the general poor condition of Prairie canola has been known for some time.
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He added that canola was about twice as much as the product values, and for any further increases in the Canadian oilseed would take a lot of support from elsewhere.
There were improved gains in Chicago soyoil from earlier today, while soybeans were up slightly, while soymeal dipped. Gains in European rapeseed and Malaysian palm oil provided additional support. Improvements in ICE canola crush margins also lent support to canola.
The Canadian dollar was weaker and supportive of canola. The loonie was at 79.50 U.S. cents compared to Friday’s close of 79.91.
As temperatures across the region were to rise well into the 30 degrees Celsius, they have been forecast to moderate by mid-week. In turn, that should bring light to moderate rainfall.
Approximately 8,600 canola contracts were traded as of 10:40 CDT.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Price Change
Canola Nov 910.50 up 16.20
Jan 897.40 up 14.60
Mar 881.40 up 13.60
May 860.50 up 12.40
