By Glen Hallick, MarketsFarm
WINNIPEG, March 14 (MarketsFarm) – Prices on the ICE Futures canola market were on the upswing at midday on Thursday.
After starting the day choppy, May canola was up C$4.70 at C$463.00 per tonne.
A Winnipeg-based trader speculated China could be quietly purchasing canola.
“China played the same game with beans. Get into a battle with the U.S. government. Crash the beans down. Pretend you’re never going to buy beans again. As soon as the price drops, come in and buy up all of the beans,” the trader theorized.
He said China could be doing the same thing with Canada.
The trader also noted canola has been firm and attractively priced.
“Spec fund players, largely on spreads, have been heavily short on canola. They see a good downswing and are covering,” he said.
Another trader supported the idea that short covering has been a strong influence. However he suspected canola will resume drifting downward.
About 15,500 canola contracts were traded as of 10:39 CDT.
Prices in Canadian dollars per metric tonne at 10:39 CDT:
Canola May 463.00 up 4.70
Jul 471.20 up 4.10
Nov 482.30 up 1.50
Jan 488.40 up 1.40