WINNIPEG – The ICE Futures canola market was higher at midday on Wednesday, making gains after two straight days of declines.
One trader explained that canola is showing independent strength as it recovers from a correction in the vegetable oil market.
“It managed to turn on its own and show its (firmness), which is what it should be doing because canola is undervalued,” the trader said. “After that happened, soybean oil reversed and turned firmer, as well. Still, we can’t say yet if there’s a strong rally in soybean oil.”
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Chicago soyoil traded higher along with European rapeseed, while Malaysian palm oil traded mostly higher. Crude oil traded around US$2 per barrel lower due to the rising number of new COVID-19 cases in China.
The United States Department of Agriculture (USDA) is set to release its monthly supply/demand report at 11:00 CST, with any surprises in the data likely to set the tone for the North American grains and oilseeds, including canola, by the close.
The Canadian dollar erased some of Tuesday’s gains, dropping one-tenth of a United States cent.
Nearly 12,800 canola contracts were traded as of 10:32 CST.
Price Change
Canola Jan 890.50 up 6.30
Mar 887.70 up 5.60
May 890.00 up 5.70
Jul 891.40 up 4.70
