ICE canola rallies with outside markets

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Published: October 6, 2020

By Phil Franz-Warkentin, MarketsFarm

WINNIPEG (MarketsFarm) – The ICE Futures canola market was up sharply at midday Tuesday, as gains in outside vegetable oil markets provided spillover support.

Malaysian palm oil futures posted sharp gains overnight, while Chicago Board of Trade soyoil was also up at midday. Good export demand for United States soybeans also gave that market a boost, as dryness concerns and seeding delays in Brazil may shift more Chinese demand to the U.S., according to a broker.

He said weakness in the Canadian dollar was also supportive, “with all things pointing higher for canola.”

Farmers have made good deliveries into the commercial pipeline in recent weeks, but with harvest operations nearing completion across the Prairies a resulting slowdown in farmer sales was also said to be supportive for canola.

The Chicago soy complex was outpacing canola to the upside, leaving room for more gains in the Canadian oilseed.

About 12,200 canola contracts traded as of 10:41 CDT.

Prices in Canadian dollars per metric tonne at 10:41 CDT:

Price Change
Canola Nov 526.40 up 6.00
Jan 532.60 up 5.80
Mar 539.90 up 6.70
May 542.40 up 5.30

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