ICE canola midday: Short covering pushing up prices

By Glen Hallick, MarketsFarm

WINNIPEG, March 28 (MarketsFarm) – ICE Futures canola contracts were on the rise in trading at midday Thursday.
“Short covering is coming into the market giving us a nice little bounce,” said a Winnipeg-based trader.

He noted funds are maxed out on the short side and other specs have a big short as well.

May canola was up C$4.30 at C$455.70 per tonne by midday.

The trader said there weren’t any new lows set for May and July canola in overnight trading, although there was for the November contract.

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With the United States Department of Agriculture releasing its Prospective Planting and Grain Stocks quarterly reports on Friday, traders are preparing for how the markets could react, he said.

While tensions between Canada and China persist, the trader commented the lack of any negative news has been helpful.

But, farmers “are still shell-shocked” from this month’s events pertaining to China and are largely unwilling to sell. In turn, exporters and crushers are paying more for canola.

About 8,130 canola contracts were traded as of 10:42 CDT.

Prices in Canadian dollars per metric tonne at 10:42 CDT:

Price Change
Canola May 455.70 up 4.30
Jul 463.30 up 4.10
Nov 474.70 up 3.50
Jan 481.10 up 3.10