By Glen Hallick, MarketsFarm
WINNIPEG, March 1 (MarketsFarm) – As canola futures on the Intercontinental Exchange (ICE) continued to spike at midday Tuesday, a trader warned that a “violent collapse” is likely before this week is out.
Now into its sixth day, Russia’s invasion of Ukraine has spurred enormous gains in the Chicago soy complex, Malaysian palm oil and European rapeseed, as well as canola, with record highs in a number of cases.
“The rationale behind these moves is very thin,” he stated, noting there has been a lot of emotion and money involved in the surge of vegetable oil prices around the globe because of the war.
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As canola advances, the trader said the old crop contracts have been rather good at keeping pace with other veg oils, but the new crop positions were lagging behind somewhat.
Global crude oil prices were surging ahead, lending more support to the edible oils.
The Canadian dollar was relatively steady, with the loonie at 78.81 U.S. cents compared to Monday’s close of 78.75.
Approximately 19,100 canola contracts were traded as of 10:33 CST.
Prices in Canadian dollars per metric tonne at 10:33 CST:
Price Change
Canola May 1,084.90 up 51.90
Jul 1,050.40 up 40.60
Nov 897.50 up 21.10
Jan 895.00 up 17.80
