By Glen Hallick
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange continued climb higher by late Wednesday morning.
An analyst said the forthcoming meeting between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping “is hard to quantify,” but their talk was providing some support to canola.
The analyst said a larger factor has been the upward momentum in Chicago soybeans, having broken out of their year-long range. He also noted that canola, soybeans and corn have risen above their harvest lows.
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The January canola contract rose above its 50-day moving average, with further supported the Canadian oilseed’s values.
There were more increases in the Chicago soy complex and in MATIF rapeseed, but Malaysian palm oil was lower. Gains in crude oil underpinned the vegetable oils.
The Bank of Canada announced on Wednesday a 25 basis-point cut to its key interest rates, bringing them down to 2.25 per cent.
The Canadian dollar remained on the upswing by mid-session Wednesday, with the loonie rising to 72.00 U.S. cents, compared to Tuesday’s close of 71.64.
Approximately 38,800 canola contracts were traded as of 10:50 am CDT, with prices in Canadian dollars per metric tonne:
Canola Nov 632.00 up 7.30
Jan 645.80 up 7.00
Mar 656.80 up 6.30
May 666.80 up 5.70
To access the latest futures prices, go to https://www.producer.com/markets-futures-prices/
