By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 22 (MarketsFarm) – The ICE Futures canola market was mixed at midday Monday, with new contract highs in the nearby contracts and a slightly softer tone in the new crop months.
The lightly-traded nearby March contract exceeded C$800 per tonne, marking the first time any canola contract has ever traded above that level.
Tight old crop supplies and the need to ration demand going forward remained the major fundamental supportive factor in canola, with speculators taking values higher “just because they can” adding to the gains, according to a trader.
Weakening crush margins should be putting some pressure on values, the trader added, noting that domestic processors were likely backing away from the market at current price levels.
The Chicago Board of Trade soy complex provided little direction at midday, with soybeans only posting small gains and the products narrowly mixed.
About 14,500 canola contracts traded as of 10:45 CST.
Prices in Canadian dollars per metric tonne at 10:45 CST:
Canola Mar 800.70 up 27.20
May 746.90 up 11.40
Jul 715.70 up 12.00
Nov 588.90 dn 0.60