WINNIPEG, Manitoba--Intercontinental Exchange canola futures were continuing to climb higher at mid-morning Wednesday, adding to Tuesday's increases.
An analyst commented that over the last month canola futures dropped from about C$731 per tonne in the January contract in mid-October, down to C$672 by early November, only to bounce back to around C$725.
He pointed to "the mighty funds" being largely behind the recent hike prices, as they have built a record short position.
"You have the funds again covering their short positions because of the weather in Brazil," he said, noting soybean planting there has been stymied by very dry conditions in the north and excessively wet conditions in the south.
Meanwhile, additional support for canola came from gains in Malaysian palm oil while pressure was applied by losses in the Chicago soy complex along with European rapeseed.
As crude oil pulled back, it weighed on vegetable oil values.
Canola crush margins were higher, with the November-December position just short of C$263 per tonne above futures.
The Canadian dollar was higher at mid-Wednesday morning with the loonie rising to 73.21 U.S cents compared to Tuesday's close of 72.86.
Approximately 23,100 canola contracts were traded as of 11:36 EST.
Prices in Canadian dollars per metric tonne at 11:36 EST:
Price Change Jan 717.60 up 3.70 Mar 723.00 up 2.70 May 726.30 up 2.90 Jul 729.60 up 3.00
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
11-15-23 1217ET
