ICE canola turns higher after early losses

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Published: 5 hours ago

Glacier FarmMedia — ICE Futures canola contracts were stronger at midday Friday, recovering from overnight losses.

  • A turn higher in crude oil, after energy markets had initially moved lower, contributed to the eventual gains in canola.
  • Weakness in the Canadian dollar, which was down by nearly half a cent relative to its United States counterpart, added to the relative strength in canola as the softer currency underpins crush margins and makes exports more attractive for international buyers.
  • Nearby crush margins have topped C$300 per tonne above the futures, rising by more than C$70 over the past month. The wide margins indicate canola seed remains cheap relative to its product values.
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  • Canada exported 113,500 tonnes of canola during the week ended March 8, reported the Canadian Grain Commission. That was down from 203,000 tonnes the previous week, with crop year-to-date exports of 4.6 million tonnes about 27 per cent behind what moved by the same time a year ago.   
  • Chicago soyoil futures were narrowly mixed at midday. Malaysian palm oil settled stronger, while European rapeseed futures were posting small losses.
  • An estimated 34,000 canola contracts traded as of 10:41 CDT.

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

Canola            May   740.40    up  6.10

                  Jul   749.80    up  5.80

                  Nov   734.90    up  4.40

                  Jan   739.80    up  3.40

Access the latest futures prices at https://www.producer.com/markets-futures-prices/

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