By Glen Hallick, MarketsFarm
WINNIPEG, March 25 (MarketsFarm) – ICE Futures canola contracts were up at midday Friday, as market was having a bounce according to a Winnipeg-based trader.
“We’re a good $9 off of the lows on the overnights,” he said.
The Commitment of Traders, he noted, showed that spec and short funds had a sizeable short position of approximately 56,000.
“There may be some short covering when you get that kind of bounce back off the lows,” the trader commented.
The markets in the United States were firm at midday, which provided support to canola, he said.
As for China, there have been reports of the country looking to ban other products from Canada besides canola. Last week China ceased its canola purchases from Canada, as part of what is widely believed to be continuing retaliatory action for the arrest of a Huawei executive by Canadian authorities in December.
The trader said farmers have been waiting to see how things pan out with the China situation and prices. Keeping canola off the market provides support.
Also, road bans across the Prairies currently restrict farmers from making deliveries.
About 13,300 canola contracts were traded as of 10:48 CDT.
Prices in Canadian dollars per metric tonne at 10:48 CDT:
Canola May 458.60 up 4.70
Jul 467.00 up 4.50
Nov 478.50 up 3.70
Jan 485.30 up 4.00