By Marlo Glass, MarketsFarm
WINNIPEG, Dec. 18 (MarketsFarm) – The ICE Futures canola market was stronger at midday on Wednesday, bouncing back from lower prices in overnight trade.
Canola values were bolstered by strong trade activity and profit-taking ahead of the holidays. Grain markets have been pushing higher throughout the month, and are expected to hold on to gains into the New Year.
Strong domestic crush margins have also been favourable for canola. According to ICE, as of yesterday, crush margins are C$123 above the January contract.
The Canadian dollar held steady at around 76 U.S. cents, making further gains for canola challenging.
Weakness in the soy complex on the Chicago Board of Trade weighed on canola values. However, since canola had not matched recent gains in the soy market, it remains competitively priced compared to other vegetable oils.
About 31,000 canola contracts traded as of 10:40 CST.
Prices in Canadian dollars per metric tonne at 10:40 CST:
Price Change
Canola Jan 466.40 up 1.10
Mar 475.10 up 1.60
May 484.20 up 1.20
Jul 488.30 up 1.40
END
