Glacier FarmMedia MarketsFarm – The ICE Futures canola market rose on Tuesday as it was lifted by most comparable oils.
Chicago soyoil gained more than one United States cent per pound. Meanwhile, European rapeseed was also higher and crude oil saw sharp rises on speculation Saudi Arabia is pushing for production cuts. However, Malaysian palm oil was mixed.
The Canadian dollar was up more than one-tenth of a U.S. cent compared to Monday’s close.
One trader said another reason for canola’s rally is the funds covering their short positions. In addition, growers remain in a “wait-and-see mode” deciding when to sell their product.
“If other oilseeds go higher, canola can outrun them because of fund short covering,” the trader said. “If you can close canola over C$725 (per tonne), you will see the funds really ramp up their short covering and we could have a good rally going into Christmas.”
About 29,800 contracts have traded at 10:21 CST. Prices in Canadian dollars per metric tonne:
Price Change
Jan 711.80 up 9.50
Mar 714.20 up 9.30
May 718.00 up 9.60
Jul 720.90 up 9.40
