By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 9 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Monday, getting good spillover support from the Chicago soy complex, according to a Winnipeg-based trader.
Soyoil at the Chicago Board of Trade was up by more than half of a United States cent, which was “dragging canola up today,” he said, noting that Malaysian palm oil was also strong.
Otherwise, canola has performed poorly in recent days and received almost no support from Statistics Canada’s crop production report released on Dec. 6. The trader said the only beneficial aspect to the report was it lowered some of the excess supply.
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The large volume of trading so far can be attributed to higher canola bids, along with “what could be the beginning of some commercials,” the trader commented.
He speculated that canola could push higher, following soyoil and if the Canadian dollar doesn’t rise too much further.
Of which, the Canadian dollar was a little stronger so far today at 75.58 U.S. cents, compared to Friday’s close of 75.44.
Approximately 21,700 canola contracts were traded as of 10:39 CST.
Prices in Canadian dollars per metric tonne at 10:39 CST:
Price Change
Canola Jan 460.80 up 2.40
Mar 469.80 up 2.80
May 477.50 up 3.10
Jul 483.50 up 3.50
