By Glen Hallick, MarketsFarm
WINNIPEG, Feb. 9 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher at midday Wednesday, but had backed away from larger increases earlier this morning.
“It’s following the veg oil markets,” a trader commented, noting that the Canadian oilseed is definitely a follower, being propped up in particular by higher product values.
The gains in edible oils were being supported by increases in global crude oil prices. Although the latter were stepping back from larger upticks as well.
With the United States Department of Agriculture about to release its monthly supply and demand estimates today, the trader said there are others who believe money can be made off of the report. However, he stressed there is never any guarantee that will happen.
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“The South American crops will be reduced to some degree. It’s just a question of whether or not it will satisfy the trade,” he stated.
The Canadian dollar was higher with the loonie at 78.88 U.S. cents when compared to Tuesday’s close of 78.68.
Approximately 12,100 canola contracts were traded as of 10:36 CST.
Prices in Canadian dollars per metric tonne at 10:36 CST:
Price Change
Canola Mar 1,025.70 up 3.00
May 1,012.80 up 5.70
Jul 983.40 up 2.70
Nov 841.50 up 0.30
