By Glen Hallick, MarketsFarm
WINNIPEG, July 26 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were up slightly at midday Wednesday, with a trader suspecting the spreaders being behind the gains.
“They’re in the mode to buy canola and sell soyoil,” the trader commented, noting that until today canola lost about C$60 to C$70 per tonne to soyoil.
“This morning they decided to go the other way, take their profits, and they started buying canola and sell soyoil,” he theorized, adding one never really knows who is behind such movements in the market.
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The trader said the rain on the Prairies over the last seven days has helped the crop, although some parts of the region missed out on the precipitations.
The vegetable oils were in flux on Wednesday, with Chicago soyoil down while Malaysian palm oil and European rapeseed were mixed. Chicago soybeans were mixed as well while soymeal made gains. Global crude oil prices were relatively steady, which meant they provided little direction to the veg oils.
The Canadian dollar was lower at mid-Wednesday morning, as the loonie slipped to 75.70 U.S. cents compared Tuesday’s close of 75.85.
Approximately 17,900 canola contracts were traded as of 10:36 CDT.
Prices in Canadian dollars per metric tonne at 10:36 CDT:
Price Change Canola Nov 824.70 up 0.70 Jan 827.90 up 1.40 Mar 825.70 up 1.70 May 822.40 up 5.00
