By Glen Hallick
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange swung higher late Tuesday morning, benefiting from gains in the Chicago soy complex, MATIF rapeseed and Malaysian palm oil.
However, small declines in crude oil applied some pressure on the vegetable oils.
An analyst said the November contract needed to remain above a specific level.
“The further away we can be from that $600 per tonne mark, the better off we are,” the analyst commented.
For that to happen, he said Chicago soyoil needed to remain above 50 cents per pound. So far this morning, its December contract has exceeded 50.60 cents/lb.
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The analyst added he would like to see the November canola contract rise above its 20-day moving average and push towards its 50-day average. Currently, the November contract is C$6 below its 20-day.
With the combining of Prairie canola more than 75 per cent finished, harvest pressure was waning. However, canola exports remained problematic with a lack of buying by China.
The Canadian dollar nudged up a little by mid-session Tuesday, with the loonie at 71.70 U.S. cents, compared to Monday’s close of 71.66.
Approximately 21,400 canola contracts were traded as of 10:16 am CDT, with prices in Canadian dollars per metric tonne:
Canola Nov 613.70 up 6.20
Jan 626.60 up 6.20
Mar 638.10 up 6.10
May 648.20 up 5.70
To access the latest futures prices, go to https://www.producer.com/markets-futures-prices/
