ICE Canola Climbing Upward But Gains Are Slipping

WINNIPEG, Manitoba--ICE canola futures were higher at midday Wednesday, but as with Tuesday's trading, those gains were fading.

"This only gets us back to the previous highs from a few days ago," an analyst commented.

Support for canola was coming from upticks in Chicago soyoil, but as soybeans turnaround to fall back at mid-morning, that pulled the Canadian oilseed away from its bigger increases.

Meanwhile soymeal was already lower. There was additional support from modest gains in European rapeseed and Malaysian palm oil. Global crude oil prices were on the upswing, with spillover finding its way into the vegetable oils.

The analysts suggested that should canola "continue to goose soyoil" it could push to the C$800 per ton range.

While Prairie temperatures are expected to remain in the low to mid-20's degrees Celsius, the eastern half has been forecast to receive thunderstorm later in the week. However, the western half is to remain on the dry side.

The Canadian dollar was lower at mid-Wednesday morning, as the loonie slips to 75.40 U.S. cents compared with Tuesday's close of 75.65 U.S. cents.

About 23,800 canola contracts were traded as of 11:40 a.m. ET.

Prices in Canadian dollars per metric ton at 11:40 a.m. ET:

   Canola     Price      Change 
 
      Nov     746.50     up 7.00 
      Jan     751.20     up 6.70 
      Mar     755.10     up 6.50 
      May     760.00     up 7.30 

Source: Commodity News Service Canada, [e-mail]

(END) Dow Jones Newswires

07-05-23 1218ET