WINNIPEG – The ICE Futures canola market was higher at midday on Monday despite mixed sentiment in comparative oils.
Chicago soyoil was lower, but European rapeseed was mixed and Malaysian palm oil was higher. Crude oil was down by nearly US$1 per barrel as speculation over further key interest rate hikes by the United States Federal Reserve outweighed an unexpected supply disruption in Poland from a Russian oil and gas pipeline.
One trader said that canola’s gains are part of a cycle every two to three weeks where the spread between the canola and soy markets either narrows or widens.
“(Canola’s) been trading relatively weak compared to the soy markets for the past couple of weeks,” the trader said. “Maybe the spreaders are pushing canola prices the other way (and are) starting to take profits from it.”
The Canadian dollar gained three-tenths of a U.S. cent from Friday’s close.
Nearly 17,330 canola contracts were traded as of 10:30 CST.
Price Change
Mar 842.90 up 8.50
May 824.40 up 4.70
Jul 819.50 up 3.10
Nov 796.20 up 1.70
