WINNIPEG, Manitoba--Intercontinental Exchange canola futures were attempting to turn positive at mid-session on Tuesday, coming off their earlier lows.
"This is just routine seasonal rebounds and some short covering," a broker commented.
He also said farmer selling recently surged as cash prices climbed to C$14 per bushel across the Canadian Prairies. He said many farmers hung onto their canola throughout most of winter and are now eager to get rid of it before spring planting begins.
"This rally is a golden opportunity to do it," the broker stated, noting farmer selling could be behind the recent dips in canola prices.
Support for the Canadian oilseed was coming from upticks in Chicago soyoil and Malaysian palm oil, while pressure came from declines in European rapeseed. Losses in Chicago soybeans and soymeal weighed on canola values. Higher crude oil prices was lending support to the vegetable oils.
Statistics Canada reported the country's canola crush in 2023 totaled 10.52 million tons compared to the 8.77 million the year before.
The Canadian dollar was higher late Wednesday morning with the loonie climbing to 74.23 U.S. cents compared to Tuesday's close of 74.08.
Approximately 31,000 canola contracts were traded as of 11:46 a.m. EDT, with prices in Canadian dollars per metric ton:
CanolaPrice Change
May 625.90 dn 1.80
Jul 635.10 dn 0.90
Nov 641.70 dn 0.20
Jan 648.50 dn 0.90
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
03-13-24 1301ET
