By Glen Hallick
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange continued to rise on Friday morning, with what a trader said was a combination of factors.
“We had a nice turn off of the lows yesterday,” the trader said, pointing to canola’s technicals, adding that there had been some short covering.
He said there are concerns about the below-average temperatures across the Prairies, raising fears of frost possibility damaging crops. Also, the region’s canola harvest was a little behind.
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The trader said there’s a little bit of optimism out of China’s announcement that it extended by six months its investigation into alleged canola dumping by Canada. Hopes are that will provide more time for Ottawa and Beijing to negotiate a settlement.
A trade delegation headed by Saskatchewan Premier Scott Moe and Kody Blois, the prime minister’s parliamentary secretary, is set to travel to China this weekend.
In breaking news, it’s been reported that the federal government is to announce on Friday C$370 million in incentives for the Canadian canola sector in regards to biofuels.
The Canadian oilseed gleaned support from upticks in Chicago soybeans and soymeal as well as European rapeseed. However, pressure came from losses in Chicago soyoil and the Malaysian palm oil market was closed for a holiday. Declines in crude oil weighed on the vegetable oils.
The Canadian dollar was virtually unchanged by mid-session Friday, with the loonie at 72.28 U.S. cents compared to Thursday’s close of 72.31.
Approximately 34,850 canola contracts were traded as of 10:40 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 624.40 up 4.20 Jan 635.80 up 3.70 Mar 646.50 up 3.10 May 655.70 up 2.30
To access the latest futures prices, go to https://www.producer.com/markets-futures-prices/
