By Glen Hallick, MarketsFarm
WINNIPEG, Jan. 20 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were weaker at midday Wednesday due to continued profit-taking, according to a Winnipeg-based trader.
“It’s starting to rebound, led by soyoil,” commented the trader, noting that canola was being held down by the spreaders.
At midday, the March contract for Chicago soyoil was up approximately seven-tenths of a United States cent per pound. The trader said there were some expectations for canola to rebound by the end of the day.
“The commercials will come in and buy canola,” he said.
The trader stressed that canola remains “ridiculously cheap” and needs gain strength. However, he said prices might not move above contracts highs until the spring.
The Canadian dollar was stronger at 79.13 U.S. cents after closing Tuesday at 78.52.
Approximately 38,500 canola contracts were traded as of 10:44 CST.
Prices in Canadian dollars per metric tonne at 10:44 CST:
Canola Mar 649.80 dn 14.40
May 635.80 dn 10.80
Jul 620.40 dn 10.20
Nov 537.20 dn 4.40