By Glen Hallick, MarketsFarm
WINNIPEG, Nov. 12 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Thursday, as trading resumed after Remembrance Day in Canada with a little bit of profit-taking, according to a Winnipeg-based trader.
He said the market was correcting from big gains made in soybeans and corn at the Chicago Board of Trade on Tuesday that continued into Wednesday. Soybeans and corn skyrocketed on Tuesday following the release of the latest supply and demand report from the United States Department of Agriculture. The report highlighted decreases in yields, production and ending stocks for both commodities.
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“Canola should be playing [catch up] a lot more as product values were up $14 per tonne yesterday,” the trader continued.
Also, he pointed to crush margins that “have exploded,” noting they jumped C$26 dollars this week and C$40 over the last two weeks.
“That’s how much canola has lagged the soy market, but that’s the way canola always trades, it seems,” the trader stated.
“Nobody will push up canola unless they have to,” he added.
The trader said the global vegetable oil market is quite firm and able to keep canola well supported.
“It’s unlikely the funds are going to give up on these corrections,” he commented.
The Canadian dollar was weaker at 76.28 U.S. cents, compared to Tuesday’s close of 76.82.
Approximately 19,800 canola contracts were traded as of 10:52 CST.
Prices in Canadian dollars per metric tonne at 10:52 CST:
Price Change
Canola Jan 556.00 dn 2.40
Mar 559.00 dn 2.90
May 559.00 dn 3.20
Jul 558.30 dn 1.90
