WINNIPEG – The ICE Futures canola market moved upwards yet again in the middle of trading on Wednesday, primarily due to dry conditions on the Prairies and strength in comparable oils.
Chicago soyoil gained more than two United States cent per pound, while European rapeseed also made gains. Malaysian palm oil was not traded due to a holiday. Crude oil was also higher due to upcoming supply cuts from Russia.
One trader believes that canola prices have a lot more room to rise this summer, predicting another C$100 per tonne.
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“Everything’s moving higher and I think that’s going to be the trend for a while,” the trader said. “Outside of Winnipeg, it looks as good as it’s ever looked. But (there’s only been) 48 millimetres of rain since April and it’s come in 19 different (rainfalls)…When we move into higher temperatures for the rest of the week, I don’t think (the canola) is going to fill.”
The Canadian dollar gained less than one-tenth of a U.S. cent compared to Tuesday’s close. West Coast port workers in B.C. are back on the picket line Wednesday after rejecting a federally-mediated tentative agreement the night before.
Nearly 23,150 canola contracts were traded as of 10:24 CDT.
Price Change
Nov 850.60 up 17.20
Jan 845.40 up 20.30
Mar 833.40 up 18.00
May 822.40 up 19.50
