By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 28 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher at mid-session on Wednesday, as trading resumed following the holiday break.
An analyst said the gains in the Canadian oilseed were largely due to it catching up with the other markets from Tuesday. The latter were backtracking today for the most part with losses in Chicago soyoil, European rapeseed and Malaysian palm oil. There was support coming from upticks in Chicago soybeans and soymeal. Global crude oil prices were falling back, which put additional pressure on vegetable oils.
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The analyst noted that light volumes of trading during this shortened week could generate some swings. However, with China loosening its COVID-19 restrictions, its economy “will go from zero to 100 in two seconds,” he quipped, noting that would be supportive for canola.
He added that exports out of Vancouver have not been slowed that much by the inclement weather.
All of this, the analyst continued, could see the nearby March contract attempt a run at C$900 per tonne in the near future.
The Canadian dollar was slightly higher on Wednesday with the loonie at 73.58 U.S. cents, compared to Friday’s close of 73.51.
Approximately 15,900 canola contracts were traded as of 10:43 CST.
Prices in Canadian dollars per metric tonne at 10:43 CST:
Price Change Canola Jan 869.90 up 2.40 Mar 874.10 up 9.40 May 872.70 up 10.70 Jul 870.30 up 9.70
