By Glen Hallick, MarketsFarm
WINNIPEG, August 9 (MarketsFarm) – ICE Futures canola contracts were higher at midday Friday, due to spillover from the Chicago soy complex, especially soyoil, said a Winnipeg-based trader.
He said soyoil had been rather range-bound until it came to life this week, and that boosted canola prices. However, soyoil has quieted down somewhat with canola lagging behind by C$6 to C$8 per tonne as a result of spreading.
What happens in China over the next little while could also affect canola, as the country has considered removing its tariffs on vegetable oil. He said China currently has a shortage of veg oil and cannot turn to canola because of its dispute with Canada.
Read Also
Canadian dollar and business outlook
Glacier FarmMedia — The Canadian dollar was weaker Wednesday morning. At 9:08 a.m. CDT the Canadian dollar was trading at…
“They would dearly love extra amounts of canola to compensate for their soy crush, which is very low right now,” the trader commented.
He noted China has imported more palm oil and could turn to Argentina for soyoil.
Also providing support was the coming supply and demand report from the United States Department of Agriculture that will be release Monday at 11 am CDT. He said the markets have been jittery about the report and such markets tend to rise.
Plus, dry conditions have become a factor in the U.S. for its soybean crop. He said rain is needed in the next two weeks as soybeans, are at a critical stage in their development.
The Canadian dollar was up at 75.59 U.S. cents.
Approximately 14,200 canola contracts were traded as of 10:42 CDT.
Prices in Canadian dollars per metric tonne at 10:42 CDT:
Price Change
Canola Nov 454.40 up 2.20
Jan 462.30 up 1.60
Mar 469.30 up 1.80
May 476.10 up 2.30
