WINNIPEG, Manitoba--Intercontinental Exchange canola futures were lower at midsession Thursday, in what a trader said was a "rebalancing" of the market by spreaders.
"They like to push spread around and make some money," the trader commented, noting that no one in the canola market is interested in pushing it much higher at this time.
"It would take something substantial for canola to break higher," he added, suggesting that could come down the road sometime during the next three months.
Pressure on vegetable oils was coming from small declines in global crude oil prices. That helped to pull down Malaysian palm oil, but European rapeseed was on the rise. Chicago soyoil nudged lower, while soybeans and soymeal made gains.
The frigid temperatures across the Prairies this week have likely curtailed producer deliveries of canola. Although canola crush margins receded somewhat, they remain quite lucrative.
The Canadian dollar was slightly higher on Thursday, with the loonie at 75.19 U.S. cents, compared with Wednesday's close of 75.07.
Approximately 12,900 canola contracts were traded as of 11:25 a.m. EST.
Prices in Canadian dollars per metric ton at 11:25 a.m. EST:
Price Change
Canola Mar 823.10 dn 4.90
May 821.40 dn 5.70
Jul 823.40 dn 5.50
Nov 804.10 dn 3.70
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
02-02-23 1155ET
