By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 27 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) continued on their upward swing at midday Tuesday.
A trader said there’s been a notable shift in the crush margins over the last week, pulling back from as high as C$345 per tonne to C$275. He said canola during that time has gained upwards of C$50/tonne while product values have pulled back. He chalked that up to speculators likely taking profits while crushers try to lock in some of those futures.
Read Also
Canadian Financial Close: Loonie drops, new record for TSX
Glacier FarmMedia | MarketsFarm – The Canadian dollar tumbled on Friday but still ended the week slightly higher than the last….
The trader also pointed to the global supply issue, which had been problematic. He said there are decent harvests coming off of the fields in North America, with big crops in Australia, as well as Brazil receiving rain for its dry areas.
Gains in Chicago soybeans and soyoil spilled over into canola, along with good upticks in European rapeseed. Malaysian palm oil was somewhat neutral and Chicago soymeal was a little lower. Healthy increases in global crude oil prices lent additional support to vegetable oils.
Above normal daytime temperatures across much of the Prairies were beneficial to the ongoing harvest, as it contends with shorter days.
Unlike yesterday’s sharp drop, the Canadian dollar pushed lower to 72.74 U.S. cents, compared to Monday’s close of 72.91.
Approximately 14,200 canola contracts were traded as of 10:34 CDT.
Prices in Canadian dollars per metric tonne at 10:34 CDT:
Price Change
Canola Nov 832.40 up 6.40
Jan 841.70 up 6.60
Mar 848.60 up 7.00
May 850.30 up 6.60
