By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 4 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were pushing to new highs at midday Friday, riding the support from yesterday’s Statistics Canada report, according to a Winnipeg-based trader.
At one point the January contract reached $599 per tonne before backing off.
The trader added that strong vegetable oil values in general are helping to keep canola prices on their upward trend, with the oilseed gaining about $50 per tonne over the last month.
However, he cautioned there should be a round of profit-taking coming soon.
Another point of caution the trader raised was the Canadian dollar, as there is the sense in the market the loonie could push to 80 United States cents. He warned that strong loonie will eventually force canola prices to be trimmed back a little.
At midday the Canadian dollar was at 78.14 U.S. cents, compared to Thursday’s close of 77.64.
Approximately 28,200 canola contracts were traded as of 10:52 CST.
Prices in Canadian dollars per metric tonne at 10:52 CST:
Price Change
Canola Jan 594.30 up 5.20
Mar 588.80 up 5.10
May 583.60 up 5.10
Jul 576.00 up 4.50
