WINNIPEG, Manitoba-- Intercontinental Exchange canola futures were higher at midday on Thursday, pulled along by gains in Chicago soyoil.
A trader said canola is relatively cheap when compared to soyoil and that needs to change, noting there's little in canola pushing up its price. He added that other vegetable oil markets are either flat or lower.
The trader also pointed to canola crush margins, which have been approaching all-time highs for the November contract. He warned there could be a sudden about-face if those margins hit C$280 per ton above futures.
Along with strong upticks in soyoil, additional support was coming from increases in Chicago soybeans while soymeal was mixed. Spillover was also coming from gains in European rapeseed and Malaysian palm oil. Higher global crude oil prices provided more support to the vegetable oils.
The Canadian dollar was virtually unchanged at midmorning on Thursday, with the loonie at 73.97 U.S. cents.
Approximately 16,800 canola contracts were traded as of 11:32 EDT.
Prices in Canadian dollars per metric ton at 11:32 EDT:
Canola Price Change Nov 800.40 up 9.70 Jan 805.80 up 9.20 Mar 807.10 up 7.70 May 806.20 up 7.50
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
08-17-23 1209ET
