By Glen Hallick, MarketsFarm
WINNIPEG, July 7 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were turning around at midday Wednesday, correcting somewhat from yesterday’s limit down losses.
A Winnipeg-based trader stressed canola prices need to increase as the Canadian oilseed must be rationed due to tight supplies
“It’s been weaker than the United States markets on the way down,” he said.
Often movement in canola lags behind that in the U.S., but that hasn’t been the case of late.
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There was support coming from gains in Chicago soyoil, as well as increases in European rapeseed. There were moderate declines in Malaysian palm oil.
The trader suggested this year’s canola harvest might not make 18 million tonnes, even if there’s rain, adding production could top off at 16 million to 17 million tonnes.
The Canadian dollar continued losing ground due to lower crude oil prices and a stronger U.S. dollar. The loonie was at 79.95 U.S. cents compared to Tuesday’s close of 80.35.
Approximately 17,900 canola contracts were traded as of 10:51 CDT.
Prices in Canadian dollars per metric tonne at 10:51 CDT:
Price Change
Canola Nov 788.70 up 17.30
Jan 779.30 up 11.20
Mar 771.60 up 11.50
May 757.40 up 8.50
