By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 4 (MarketsFarm) – The ICE Futures canola market was holding onto small gains at midday Monday, but was well off its overnight highs as profit-taking came forward to weigh on values.
Canola hit fresh contract highs in overnight activity, trading as high as C$646.70 per tonne in the most active March contract. Gains in Chicago Board of Trade soybeans, amid persistent South American weather concerns, provided spillover support.
“It’s all about South American weather,” said an analyst. “If we don’t get rain in the next two to three weeks (in South America), the market will probably move even higher.”
However, soybeans were well off their own overnight highs by midday, while soyoil was lower in Chicago.
Recent strength in the Canadian dollar also put some pressure on the canola market.
About 16,500 canola contracts traded as of 10:31 CST.
Prices in Canadian dollars per metric tonne at 10:31 CST:
Price Change
Canola Mar 638.30 up 1.30
May 627.20 up 1.50
Jul 627.90 up 2.20
Nov 616.90 up 4.40
