ICE canola correcting higher at midday Thursday

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Glacier FarmMedia — ICE Futures canola contracts were stronger at midday Thursday, taking back some of Wednesday’s losses as gains in crude oil supported world vegetable oil markets.

  • Uncertainty over the stability of the tentative ceasefire between the United States and Iran saw crude oil rising on Thursday, with traffic through the Strait of Hormuz still constricted.
  • Chicago soyoil, European rapeseed and Malaysian palm oil were all higher, contributing to the gains in canola.
  • However, “the way up isn’t ever as fast as the way down,” said an analyst, as canola had only recovered about half of Wednesday’s losses by midsession.  
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  • The U.S. Department of Agriculture will release updated supply/demand estimates at 11:00 CDT. Analysts do not expect any major adjustments from the previous report, but any surprises in the data could provide direction for the futures ahead of the close.
  • An estimated 38,000 canola contracts traded as of 10:34 CDT.

Prices in Canadian dollars per metric tonne at 10:34 CDT:

Canola            May   713.10    up  8.20

                  Jul   726.70    up  8.60

                  Nov   723.90    up  9.10

                  Jan   730.40    up  8.90

Access the latest futures prices at https://www.producer.com/markets-futures-prices/

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