By Glen Hallick, MarketsFarm
WINNIPEG, March 31 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher at midday Wednesday, recovering somewhat from the steep losses incurred yesterday.
A Winnipeg-based trader said canola was struggling in its recovery, expecting prices to be C$6 to C$8 per tonne higher. Especially with the strong increases in the Chicago soy complex.
Although canola prices have shot up a tremendous amount over the last several months, the trader said the Canadian oilseed, “is the cheap one on the block,” when compared to other edible oils.
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He surmised there were either the buying of soy and the selling of canola, or that someone was holding canola back.
With the United States Department of Agriculture (USDA) scheduled to release its reports on prospective plantings for this year and its quarterly grain stocks report at 11 am Central, the trader pointed to the latter as the one mostly likely to affect the canola market. Even then, he said the stocks report would probably have a 50-50 chance of having a major effect on canola.
The Canadian dollar was on the rise and tempering further gains in canola. The loonie was at 79.51 U.S. cents compared to Tuesday’s close of 79.17.
Approximately 13,150 canola contracts were traded as of 10:41 CDT.
Prices in Canadian dollars per metric tonne at 10:41 CDT:
Price Change
Canola May 732.20 up 5.10
Nov 598.20 up 8.70
Jan 603.90 up 11.20
