By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 8 – (MarketsFarm) – The ICE Futures canola market was stronger at midday Tuesday, hitting fresh contract highs once again with the largest gains in the front months.
“It’s one hundred per cent being driven by the uncertainty about how the Ukraine situation will evolve through the spring and summer,” said a trader. “We know there will be disruption to agricultural production and deliveries, but we don’t know the magnitude of it,” he added, noting that “the market is moving through a fog right now.”
Crude oil was up sharply on the day, which was underpinning the vegetable oil markets as well, including Chicago Board of Trade soyoil and canola. Weakness in the Canadian dollar, which was down by nearly half of a cent relative to its United States counterpart, was also supportive.
About 15,500 canola contracts traded as of 10:39 CST.
Prices in Canadian dollars per metric tonne at 10:39 CST:
Price Change
Canola May 1,120.10 up 22.90
Jul 1,087.60 up 17.90
Nov 906.60 up 4.00
Jan 904.00 up 2.80
