WINNIPEG – The ICE Futures canola market was mixed with negative sentiment at midday Friday, pressured by a rising Canadian dollar.
While Chicago soyoil made gains, European rapeseed was mostly higher and Malaysian palm oil was down. Crude oil rose by more than US$1 per barrel after Russia said it will cut its crude oil output by 500,000 barrels per day starting in March.
Spreads between the old crop contracts are tightening up and one trader believes there is strength coming in for some “cash spot purchases.”
“Where it’s coming from? It’s hard to say. Is it exports, perhaps? We’re not sure yet. But all canola is starting to drift down to the low end of the range it’s been in over the past six months,” the trader added.
The Canadian dollar jumped nearly half of a United States cent compared to Thursday’s close.
Nearly 24,040 canola contracts were traded as of 10:24 CST.
Price Change
Mar 828.90 up 1.20
May 820.90 dn 2.30
Jul 818.00 dn 3.90
Nov 795.20 dn 7.50
