By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 22 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower at midday Friday in “a very volatile market,” according to a Winnipeg-based trader.
“It’s operating in strange ways. We watched the crush value on canola go up C$105 and then drop to C$70 and now it’s come back to C$100,” the trader commented.
“When everybody gets long and the market starts to go down, some people need margin money and one way to get it is to sell what you got,” he added, suggesting that it remains possible for canola to see gains of C$2 to C$4 per tonne today.
The trader also noted to narrowing gap in the July/November spread, going from about C$106 to around C$77.
As well, he said the open interest in the November contract was only a few hundred behind that for March.
In edible oils were significant declines in the Chicago soy complex, plus losses in European rapeseed. As for Malaysian palm oil, it had gains in its March contract but was lower after that.
The Canadian dollar was lower at 78.59 U.S. cents after closing Thursday at 79.20.
Approximately 16,900 canola contracts were traded as of 10:38 CST.
Prices in Canadian dollars per metric tonne at 10:38 CST:
Canola Mar 656.10 dn 0.90
May 642.70 dn 2.30
Jul 631.00 dn 1.50
Nov 552.00 dn 1.00