By Marlo Glass, MarketsFarm
WINNIPEG, Dec. 19 (MarketsFarm) – The ICE Futures canola market was stronger at midday on Thursday, bouncing back from losses in the previous day.
Canola values were bolstered by strong trade activity and profit-taking ahead of the holidays. Canola has been supported by end of year short covering, as there are only about half a dozen trading days left in the year.
Strong domestic crush margins have also been favourable for canola. According to ICE, as of yesterday, crush margins are C$118 above the January contract.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
One trader said, “Crushers have been sitting back watching margins get bigger and bigger, and now at year end they’re starting to lock in some of those margins.”
Strength in the soy complex on the Chicago Board of Trade also supported canola values. The trader said that canola remains “cheap and well-supported” in comparison to other vegetable oils.
The Canadian dollar held steady at around 76 U.S. cents, keeping a lid on further gains.
About 19,000 canola contracts traded as of 10:45 CST.
Prices in Canadian dollars per metric tonne at 10:45 CST:
Price Change
Canola Jan 467.60 up 2.00
Mar 477.00 up 2.20
May 485.70 up 2.10
Jul 490.80 up 1.50
END
