The ICE Futures canola market tried to recover from a heavy downturn in the middle of trading on Wednesday, fueled by rising comparable oil prices.
Crude oil gained nearly US$2 per barrel due to shrinking United States inventories and the death of a Hamas leader after a missile strike in Tehran. Chicago soyoil, European rapeseed and Malaysian palm oil also made gains.
The Canadian dollar was up nearly one-quarter of a U.S. cent compared to Tuesday’s close. The U.S. Federal Reserve will announce its latest key interest rate decision later today.
One analyst not only attributed canola’s rise to the strength in crude oil, but also the oilseed finding support at C$620 per tonne.
About 29,400 contracts have traded at 10:05 CDT. Prices in Canadian dollars per metric tonne:
Price Change
Nov 626.40 up 8.70
Jan 634.20 up 9.20
Mar 641.00 up 9.50
May 644.50 up 9.60
