WINNIPEG, Manitoba--Intercontinental Exchange (ICE) canola futures were seeing declines in most old crop months at midday Wednesday, while the new crop positions were steady to higher.
A trader said there's been a move to boost the new crop closer to the old crop, noting this could carry on for the time being.
"What it's done, it's brought the November up to a decent price," he said. "I think we're going to see this continue, where the deferred comes up. They probably done all of the rationing they feel is needed on the nearby."
The trader suggested the specs have realized old crop canola likely won't climb above C$1,000 per tonne for any notable period of time, and they decided to focus on the new crop contracts.
In the veg oil markets, there was pressure coming from declines in most positions in European rapeseed, although its immediate February contract was higher.
The Canadian dollar as well added a little bit of pressure into the mix. A higher loonie was at 79.38 U.S. cents when compared to Tuesday's close of 79.18.
Support came from upticks in the Chicago soy complex along with small gains in Malaysian palm oil. Continuing increases in global crude oil were lending support to edible oils.
About 12,750 canola contracts were traded as of 11:37 EST.
Prices in Canadian dollars per metric tonne at 11:37 EST:
Price Change Canola
Mar 990.60 dn 4.60 May 985.70 dn 2.90 Jul 967.50 dn 0.50 Nov 835.60 up 1.60
Source: Commodity News Service Canada
Write to Glen Hallick at news@marketsfarm.com
(END) Dow Jones Newswires
01-26-22 1207ET
