By Glen Hallick, MarketsFarm
WINNIPEG, March 4 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were stronger at midday Thursday, with contracts hitting new highs. The May contract topped off at C$797.30 per tonne before easing back from its daily limit.
The impetus for the spike is due to tight supplies of old crop, said a Winnipeg-based trader.
“Canola is becoming extraordinarily expensive, which it has to do, but new crop is still dirt cheap,” he explained, noting there are still a few farmers hanging on to their canola.
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Caught up in canola’s rise has been crush margins, which have collapsed by C$50 per tonne this week, the trader added.
The rally was supported by very sharp gains in Chicago soyoil. Additional support came from moderate to strong increases in European rapeseed and Malaysian palm oil.
A higher Canadian dollar, was tempering further gains in canola. The loonie was at 79.35 U.S. cents after closing on Wednesday at 79.17.
Approximately 18,800 canola contracts were traded as of 10:38 CST.
Prices in Canadian dollars per metric tonne at 10:38 CST:
Price Change
Canola May 791.70 up 24.40
Jul 748.00 up 19.70
Nov 616.80 up 6.20
Jan 619.00 up 5.70
