By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 18 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were weaker at midday Monday, as the vegetable oils moved lower while crude oil prices climbed higher.
As crude oil pushed upward with West Texas Intermediate around US$92 per barrel, there was weakness in the Chicago soy complex, European rapeseed and Malaysian palm oil.
An analyst stated that veg oils are essentially “divorced” from crude oil, although he stressed, “they should be linked to some extent.” He added that canola was rolling along with the tide.
Read Also
Canadian Financial Close: Loonie, TSX rise ahead of Labour Day
Glacier FarmMedia — The Canadian dollar ended the week with its highest close in a month. The loonie closed at…
The analyst also noted at this time of year it’s common to see traders “basically buying crude and selling off everything else” including equities and futures.
Weather-wise today, northern Alberta along with areas of the eastern Prairies are to get rain, as temperatures across the region are to range from the low to upper 20 degrees Celsius. Those locations not getting rain are expected to make good harvest progress, putting more pressure on canola values.
The Canadian dollar was higher at mid-Monday morning with the loonie at 74.09 U.S. cents compared to Friday’s close of 73.93.
Approximately 20,550 canola contracts were traded as of 10:25 CDT.
Prices in Canadian dollars per metric tonne at 10:25 CDT:
Price Change Canola Nov 746.30 dn 17.60 Jan 754.80 dn 17.70 Mar 761.30 dn 17.10 May 767.20 dn 16.90
