WINNIPEG, Manitoba--Intercontinental Exchange canola futures pushed higher at mid-session Thursday, with some market participants believing there could be purchases by China behind the gains.
However, one trader noted those rumours have been lurking around for some time without any confirmation. He suggested today's increases could be spreaders shifting back to canola from soybeans.
"Eventually they'll flip and go the other way to get their profits," the trader commented, adding there's likely short covering as well underpinning canola.
"End users [have been] sitting on their hands all winter enjoying the ride. They're going to have to step up their coverage as well. They can't risk getting caught in a big weather scare and not be well covered," he continued.
Going into March, the trader said to watch for a few rallies as well as hitting some seasonal lows as the market is to become choppy.
There was mixed support from comparable oils as well on Thursday. Upticks in Chicago soyoil lent support to canola, while pressure came from losses in Malaysian palm oil and European rapeseed.
Global crude oil prices were again up slightly, which provided some upward direction to the oilseeds.
The Canadian dollar was a pinch higher late Thursday morning with the loonie at 74.06 U.S. cents compared to Wednesday's close of 74.01.
Approximately 29,750 canola contracts were traded as of 11:50 EST, with prices in Canadian dollars per metric tonne:
Canola
Price Change
Mar 579.90 up 5.90
May 588.80 up 4.70
Jul 596.50 up 3.10
Nov 602.10 up 2.00
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
02-22-24 1218ET
