By Glen Hallick, MarketsFarm
WINNIPEG, July 14 (MarketsFarm) – ICE Futures canola contracts were getting a bounce on Tuesday after losses the previous day as product values improved.
“Everything was working against [canola] yesterday, but it managed to hold. The product values were down $8 or $9, the dollar was up, the oil was down and the meal was down. Today, it’s the opposite,” a Winnipeg-based trader explained.
There was good strength in the Chicago soy complex at midday, including soyoil up by nearly a half-cent. Strength as well was coming from gains in Malaysian palm oil, but European rapeseed was steady to lower.
He noted that canola didn’t move as much yesterday as the product values, dropping about $2 per tonne. Today, canola has bounced back about the same amount.
“That’s the spreaders at work. They’re constantly playing canola off against the United States market,” the trader said.
The Canadian dollar was down at 73.42 U.S cents compared to Monday’s close of 73.71.
Approximately 6,900 canola contracts were traded as of 10:40 CDT.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Canola Nov 480.00 up 2.60
Jan 487.10 up 2.30
Mar 492.20 up 2.00
May 495.40 up 1.90