By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 23 (MarketsFarm) – The ICE Futures canola market was stronger at midday Tuesday, posting a limit-up move in the nearby March contract at one point before backing away slightly.
“Another day, another record high in canola,” said a Winnipeg-based trader on the continuing rally in the futures.
He noted that speculators on the long side of the market were making great profits as prices rise, with those on the short side scrambling to exit those positions.
Tight old crop supplies and the need to ration demand going forward remained the major fundamental supportive factor in canola, with gains in the Chicago Board of Trade soy complex due to weather concerns in South America providing additional support.
However, uncertainty over the Chinese reaction to a move by the Canadian government to declare China’s treatment of its Muslim Uighur minority as a genocide kept some caution in the market. said the trader. China is a major buyer of Canada’s canola, and has already restricted imports due to diplomatic tensions between the two countries.
About 20,500 canola contracts traded as of 10:40 CST.
Prices in Canadian dollars per metric tonne at 10:40 CST:
Canola Mar 824.00 up 23.30
May 771.00 up 17.80
Jul 734.80 up 14.20
Nov 598.00 up 8.00
Futures Prices as of February 23, 2021
Prices are in Canadian dollars per metric ton