ICE Canola Midday: Tacking on modest increases

By Glen Hallick

Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were higher at midday Tuesday, however a Winnipeg-based trader said he’s unsure as to what’s supporting the increases.

The trader suggested the gains might be due to the speculative funds, which he believes have a great deal of control over the canola market.

The trader also said this year’s record canola harvest could prove to be bigger than Statistics Canada’s estimate of 21.80 million tonnes. He added that it could lead to ideas of a much larger carryout and leave farmers unsure of what to plant in the spring.

There’s support for canola from upticks in Chicago soyoil, MATIF rapeseed and Malaysian palm oil. Losses in Chicago soybeans and soymeal attempted to cap the increases in canola.

Crude oil was slightly higher, offering a small measure of positive spillover to the vegetable oils.

The Canadian Grain Commission reported for the week ended Dec. 21 that year-to-date producer deliveries of 7.28 million tonnes were down 11.1 per cent from a year ago. As well, exports of 2.54 million tonnes dropped 42.2 per cent but domestic use of 4.61 million was virtually on par with this time last year.

The Canadian dollar was largely unchanged at mid-session Tuesday, with the loonie at 73.08 U.S. cents.

Approximately 17,550 canola contracts were traded as of 10:33 am CST, with prices in Canadian dollars per metric tonne:

                        Price     Change

Canola          Jan     590.80    up  1.20

                Mar     604.90    up  2.00

                May     616.10    up  2.20

                Jul     624.40    up  2.20

To access the latest futures prices, go to https://www.producer.com/markets-futures-prices/

Stay informed with our daily market videos. Each video quickly covers key futures moves, price trends, and market signals that matter to Canadian farmers. Get clear, timely insights in just a few minutes. Bookmark https://www.producer.com/markets-futures-prices/videos

---

Newsletter Sign Up - Receive Grainews articles delivered right to your inbox!

From choosing the right herbicide to buying and maintaining machinery -- the ultimate resource for help managing your grain or integrated farming operation

Your Email(Required)

Your Postal Code(Required)

Consent

I consent to receiving emails from Glacier FarmMedia, its affiliates and divisions and third parties, containing agriculture news, updates and promotions. I can unsubscribe at any time

Email

This field is for validation purposes and should be left unchanged.