By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sep. 21 – (MarketsFarm) –ICE Futures canola contracts were stronger at midday Wednesday on ideas the market was looking underpriced compared to its product values.
The nearby crush margin for October delivery reported by ICE Futures came in at C$320 per tonne above the November contract on Tuesday, well above average levels.
Gains in European rapeseed and Malaysian palm oil futures were also supportive, although losses in the Chicago soy complex did temper the upside.
Seasonal harvest pressure was another bearish influence, although scattered showers and the risk of frost in some areas will likely cause some delays over the next week.
About 16,000 canola contracts traded as of 10:14 CDT.
Prices in Canadian dollars per metric tonne at 10:14 CDT:
Canola Nov 792.90 up 7.30
Jan 802.80 up 7.30
Mar 810.10 up 7.00
May 812.70 up 7.10
