By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 13 – (MarketsFarm) – ICE Futures canola contracts were stronger at midday Thursday, recovering from earlier declines as outside markets also reversed trajectory.
Inflation data out of the United States initially weighed on the grains and oilseeds, with the country’s consumer price index beating expectations and causing the U.S. dollar to strengthen.
While soybeans at the Chicago Board of Trade were still posting small losses, the market was well off its lows with soyoil edging higher. Crude oil was also posting gains after earlier declines, with double-digit gains in wheat also supportive for the other agricultural markets, according to a broker.
Ideas that canola remains cheap, given its wide crush margins, also underpinned the futures.
About 17,200 canola contracts traded as of 10:32 CDT.
Prices in Canadian dollars per metric tonne at 10:32 CDT:
Canola Nov 868.60 up 3.80
Jan 875.50 up 3.40
Mar 882.30 up 3.50
May 882.70 up 2.80
