WINNIPEG – The ICE Futures canola market extended its weeklong rally on Monday, receiving some support from vegetable oils.
Chicago soyoil was up nearly one United States cent per pound, while Malaysian palm oil was higher as well. European rapeseed was down in the nearby contracts but up in the deferreds. Crude oil was on both sides of unchanged.
One analyst said the funds were largely responsible for the recent upward price movement in canola, while also following soyoil. However, the rally may not last long.
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“Farmers are on the sidelines. There are some very good crops out there and then there are very poor crops out,” the analyst said. “Canola probably will be supported here, but if you look at the early crop, most of them are coming off better than expected…I think we’re in for a bit of a downtrend at harvest.”
The Canadian dollar was steady compared to Friday’s close. Light rainfall is expected for parts of southern Saskatchewan and southern Manitoba over the next few days.
Nearly 17,580 canola contracts were traded as of 10:18 CDT.
Price Change
Nov 811.20 up 10.70
Jan 816.20 up 10.00
Mar 817.40 up 10.10
May 813.10 up 8.40
