By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 16 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mostly higher at midday Wednesday, as the rolling out of the nearby January contract continued. While there were gains in the other old crop positions, the actively traded new crop months have turned lower.
“We are in the timeframe where holiday volumes are going to creep in. That’s why you’re seeing pressure on the spreads. Guys are saying ‘get me out of the Jan, I’m going to long on the March, and I’ll revisit my positions in the New Year,’” explained a trader.
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Support from gains in the Chicago soy complex and European rapeseed bolstered canola, while weaker Malaysian palm oil tempered further increases. An upswing in global crude oil prices was supportive of edible oil values.
Tight supplies and the need to ration demand were supportive of canola as well, but the Canadian oilseed is somewhat overpriced.
The Canadian dollar was stronger with the loonie at 78.28 U.S. cents compared to Wednesday’s close of 77.56.
Approximately 13,400 canola contracts were traded as of 10:28 CST.
Prices in Canadian dollars per metric tonne at 10:28 CST:
Price Change
Canola Jan 994.70 dn 5.00
Mar 983.90 up 5.30
May 949.00 up 6.60
Jul 898.00 up 5.90
