WINNIPEG, Manitoba--Intercontinental Exchange (ICE) canola futures surged higher at midday Friday, especially in the old crop contracts.
A trader said canola was attempting to catch up to other edible oils. He stated the way is being led by Malaysian palm oil, with Indonesia "playing the market beautifully."
As is often the case, canola has been lagging behind the Chicago soy complex as soybeans reached new contract highs, the trader noted. While it's unlikely canola will pull back anytime soon, he wondered how much longer this bullish edible oil market will continue.
Gains in European rapeseed were also lending support to canola, and further increases in global crude oil prices pushed edible oils upward.
The Canadian dollar added a little bit of support into the mix. The loonie dropped back to 78.39 U.S. cents when compared to Thursday's close of 78.67.
Approximately 17,600 canola contracts were traded as of 11:43 EST.
Prices in Canadian dollars per metric ton at 11:43 EST:
Price Change
Canola Mar 1,028.00 up 20.90
May 1,010.60 up 11.60
Jul 986.00 up 9.40
Nov 839.20 up 7.60
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
01-28-22 1212ET
