By Glen Hallick, MarketsFarm
WINNIPEG, March 1 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher at midday Monday, with the largest gains in the old crop months.
This comes despite declines in comparable edible oils, a Winnipeg-based trader noted.
“Canola has become way too cheap again. It can’t stay that way. It’s going to have to become more expensive,” he said.
The prospect of tightening canola supplies provided support to canola.
The trader noted the Chicago soy complex will soon have to deal with a massive soybean harvest coming out of South America, and that could affect canola as well. Although he believes canola is likely to remain relatively steady.
A higher Canadian dollar was tempering those gains at midday. The loonie was at 79.01 U.S. cents compared to Friday’s close of 78.83.
Approximately 7,900 canola contracts were traded as of 10:35 CST.
Prices in Canadian dollars per metric tonne at 10:35 CST:
Canola May 745.70 up 6.50
Jul 709.90 up 5.10
Nov 596.50 up 1.00
Jan 598.90 up 0.60