By Glen Hallick, MarketsFarm
WINNIPEG, June 8 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mostly higher at midday Tuesday, with the only declines coming in the old crop July contract.
Although new crop canola was climbing, a Winnipeg-based traded said canola prices were being suppressed.
“Somebody is deliberately standing on canola keeping it from going up,” he stated. “There’s no real reason why they should be. There’s a source of money out there, whatever it may be, suppressing the canola price, not allowing it to go up.”
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The trader estimated that canola was lagging behind Chicago soyoil by C$14 per tonne today and about C$50/tonne over the last couple of weeks.
“It’s just the way canola trades, being a small market,” he noted.
There was strong support for canola spilling over from the Chicago soy complex. Additional support was coming from European rapeseed, but there were declines in Malaysian palm oil.
The Canadian dollar was pulling back, with the loonie at 82.68 U.S. cents compared to Monday’s close of 82.83.
Approximately 14,600 canola contracts were traded as of 10:45 CDT.
Prices in Canadian dollars per metric tonne at 10:45 CDT:
Price Change
Canola Jul 872.70 dn 9.70
Nov 774.00 up 2.40
Jan 772.90 up 3.30
Mar 765.00 up 5.30
