By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 21 (MarketsFarm) – The ICE Futures canola market was stronger at midday Tuesday, with thin pre-holiday volumes exaggerating the move.
A rally in the Chicago Board of Trade soy complex contributed to the firmer tone in canola, with sharp gains in crude oil bringing buying interest back to the agricultural sector as well.
Canada’s tight supply situation remained another supportive influence, although demand is being rationed at current price levels with some ideas that the market may be looking overpriced.
The Canadian dollar was stronger at midday, putting some pressure on canola.
About 8,900 canola contracts traded as of 10:41 CST.
Prices in Canadian dollars per metric tonne at 10:41 CST:
Price Change
Canola Jan 1,022.70 up 9.50
Mar 1,012.40 up 10.20
May 976.30 up 8.80
Jul 923.50 up 7.00
