By Glen Hallick, MarketsFarm
WINNIPEG, April 1 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were stronger at midday Friday, in a session that has been seeing good amount of volatility so far.
“Somebody is still propping up November canola. It’s insanely overvalued. I don’t know how long we’ll be able to get away with this,” commented a trader.
He said Malaysian palm oil fell to its lowest levels in about six weeks, and Chicago soyoil has struggled this week as well.
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The trader suggested the canola crushers may soon reach the point where it’s alright to dump their hedges on the market. With such “monumental profits” there’s little or no risk in doing so.
That said, he stressed “it’s a phenomenal opportunity for farmers for canola to be this overvalued,” calling it a “multi-million dollar bonanza” for them.
Support for canola was coming from strong upticks in Chicago soyoil and European rapeseed. However, there’s pressure from declines in Chicago soybeans and soymeal, as well as Malaysian palm oil.
There’s been choppy trading in global crude oil prices, but they have found traction and are on the rise. Those gains were spilling over into edible oils.
The Canadian dollar was slightly lower with the loonie at 79.95 U.S. cents compared to Thursday’s close of 80.03.
Approximately 11,800 canola contracts were traded as of 10:44 CDT.
Prices in Canadian dollars per metric tonne at 10:44 CDT:
Price Change
Canola May 1,150.10 up 19.70
Jul 1,120.40 up 13.10
Nov 979.50 up 16.90
Jan 977.90 up 15.20
