By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 24 – (MarketsFarm) – The ICE Futures canola market was stronger at midday Thursday, taking back some of Wednesday’s losses.
Canola hit contract highs on Wednesday before crashing in a profit-taking correction. While overbought sentiment contributed to the selloff, a trader noted that the correction was also likely overdone – which contributed to Thursday’s move back higher.
The gains in canola came despite losses in Chicago Board of Trade soyoil, as the spreads between the commodities saw some rebalancing.
The Canadian dollar was firmer at midday, tempering the upside in canola.
The ongoing conflict in Ukraine remains a key driver of the grains and oilseeds, with spring seeded crop acreage expected to be down sharply according to the latest reports out of the country.
About 8,300 canola contracts traded as of 10:49 CDT.
Prices in Canadian dollars per metric tonne at 10:49 CDT:
Price Change
Canola May 1,142.00 up 5.30
Jul 1,112.90 up 5.10
Nov 947.60 up 9.60
Jan 945.10 up 6.70
