By Glen Hallick
Glacier FarmMedia – Canola futures on the Intercontinental Exchange were trying to overcome earlier losses on Tuesday morning.
Canola has been on the rise since January, with the nearby March contract climbing from about C$600 per tonne to more than C$660. An analyst said Canada and China resolving their trade differences has underpinned canola’s swing upward.
“It will take something fresh to keep this thing going,” the analyst said.
He added that basis levels have improved, which is a sign of good underlying demand.
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Support for canola was coming from strength in the Chicago soy complex but declines in MATIF rapeseed and Malaysian palm oil weighed on the Canadian oilseed’s values. Small losses in crude oil pressured the vegetable oils.
Canola could get some guidance after the United States Department of Agriculture releases its February supply and demand estimates at 11 a.m. CST. However, today’s report is expected not to be a major market mover.
The analyst also pointed out canola’s strength has come despite increases in the Canadian dollar, which has climbed higher by about two cents in recent weeks.
Currently, the Canadian dollar was stronger late Tuesday morning with the loonie at 73.87 U.S. cents compared to Monday’s close of 73.66.
Approximately 45,200 canola contracts were traded as of 10:34 a.m. CST, with prices in Canadian dollars per metric tonne:
Canola Mar 665.00 dn 0.70
May 675.60 dn 0.10
Jul 683.10 unchanged
Nov 673.90 unchanged
To access the latest futures prices, go to https://www.producer.com/markets-futures-prices/.
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