WINNIPEG, Manitoba--Intercontinental Exchange (ICE) canola futures were higher on Thursday in the front months but lower in the deferred positions.
A trader said there's new crop hedging going on as well as tightness in the January delivery position. He added that the shorts are scrambling.
"You gotta pay up for that January position," the trader commented.
He also noted that the canola spreads have been tightening up.
Support for the Canadian oilseed was coming from gains in the Chicago soy complex and European rapeseed, while Malaysian palm oil was slightly lower. Global crude oil prices were decreasing, with pressure spilling over into vegetable oils.
Canola crush margins continued to moderate, taking a little bit more support away from the oilseed.
The Canadian dollar was higher on Thursday with the loonie at 73.54 U.S. cents, compared to Wednesday's close of 73.31.
Approximately 18,350 canola contracts were traded as of 11:32 EST.
Prices in Canadian dollars per metric ton at 11:32 EST:
Price Change
Canola Jan 868.50 up 4.90
Mar 855.30 up 3.20
May 852.60 dn 1.20
Jul 851.70 dn 3.70
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
12-08-22 1212ET
