By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 22 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were turning mixed at midday Wednesday, with the most traded March contract hitting new highs earlier today.
A trader noted that the open interest in the nearby January canola contract was quickly receding, being already under 8,000.
Support for canola was coming from European rapeseed, which also hit new contract highs, along with strong upticks in the Chicago soy complex and Malaysian palm oil. However, prices in the soy complex were stepping away from earlier highs.
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Dry conditions in South America were the main driver of the increases, according to the trader.
“Issues in southern Brazil and Argentina remain the nearby focus as traders watch and worry, ‘are we going to see enough rain over the next little while?’” he explained.
The trader also suggested there might be some profit-taking creeping into the canola market as the Canadian oilseed won’t be traded on Dec. 27, while the United States markets will be open.
The Canadian dollar was stronger with the loonie at 77.84 U.S. cents compared to Tuesday’s close of 77.36.
Approximately 14,350 canola contracts were traded as of 10:36 CST.
Prices in Canadian dollars per metric tonne at 10:36 CST:
Price Change
Canola Jan 1,022.10 dn 0.50
Mar 1,014.10 up 1.20
May 979.60 up 3.00
Jul 926.50 up 4.40
