By Jade Markus, Commodity News Service Canada
WINNIPEG, April 18 – ICE Canada canola contracts were stronger at midday on Tuesday, holding up despite losses in other vegetable oil markets.
“We’re weak in the soy market, but canola continues to trade, as it has been for three weeks, extremely strong,” said one Winnipeg-based trader.
“Today is insanely powerful,” he added, as canola’s product value is far outpacing Chicago Board of Trade soybeans.
Malaysian palm oil was also weaker overnight.
Canola is supported by a tight supply outlook for spring, and persisting issues with getting last year’s crop off.
“I think the market is accepting that it is going to be pretty tight,” the trader said.
However, nearby canola contracts are starting to get expensive, he said, which could taper demand and limit the upside in coming sessions.
About 16,246 contracts had traded as of 10:35 a.m. CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 10:35 a.m. CDT:
