WINNIPEG, Manitoba--Intercontinental Exchange canola futures remained higher at midsession on Thursday, as the funds continued to push prices higher, according to a trader.
"They will keep it going as long as they can," he said, but warned the outside markets were showing signs of resistance.
The trader added that the rally in canola has little to do with the Canadian oilseed itself. Rather, there's an opportunity to push up prices after they fell hard earlier this month. The trader said the markets could go into a "wait and see mode" as spring planting approaches, with eyes gravitating towards the weather from now until May.
Canola was getting additional support from gains in Chicago soybeans and soymeal, but losses in soyoil were beginning to mount.
Spillover was also coming from increases in Malaysian palm oil, while European rapeseed was steady to higher.
Upticks in global crude oil prices provided more support to the vegetable oils.
The Canadian Grain Commission released its February export report, showing 767,200 tonnes of canola left Canada that month for a jump of 109.2 percent from February 2022. The canola export year-to-date for 2022/23 reached 5.116 million tonnes, up 34.8 percent from this time last year.
The Canadian dollar was higher so far on Thursday, with the loonie at 73.89 U.S. cents, compared to Wednesday's close of 73.66.
About 24,500 canola contracts were traded as of 11:36 EDT.
Prices in Canadian dollars per metric tonne at 11:36 EDT:
Price Change
Canola
May 774.30 up 4.30
Jul 755.40 up 3.30
Nov 726.00 up 1.00
Jan 729.50 up 0.80
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
03-30-23 1210ET
