By Glen Hallick
Glacier FarmMedia – Canola futures on the Intercontinental Exchange continued to push higher on late Tuesday morning. An analyst said the increases are due in part to Friday’s Canada-China trade deal.
“I would say it’s a little bit of follow-through,” the analyst said, noting there’s often some new year optimism in the market.
He explained the March canola contract gained about C$17 per tonne at one point on Friday, but that faded to C$3 by the close. Now canola is increasing, trying to return to those levels.
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The analyst said reports of China buying 60,000 tonnes of Canadian canola for March delivery are also supportive.
Chicago soyoil, which he said has been steadily increasing since Thursday, was lending support to canola. Gains in Malaysian palm oil and MATIF rapeseed also underpinned the Canadian oilseed.
Increases in crude oil also spilled over into the vegetable oils.
The Canadian dollar was higher on Tuesday, with the loonie at 72.33 U.S. cents compared to Monday’s close of 72.10.
Approximately 51,450 canola contracts were traded as of 10:45 am CST, with prices in Canadian dollars per metric tonne:
Canola Mar 641.30 up 2.30
May 653.40 up 3.60
Jul 660.90 up 5.20
Nov 656.10 up 5.70
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