ICE Canola Correcting Higher

WINNIPEG, Manitoba--The ICE Futures canola market was sharply higher at midday Wednesday, seeing a correction after recent losses as speculators moved back to the buy side.

Chicago Board of Trade soybeans and soyoil futures were stronger at midday, providing spillover support for canola. Uncertainty over South American production, despite recent rains, accounted for some of the strength in the United States futures.

"For the last week canola was under liquidation pressure in the old crop, coming down quite a bit more than the other markets because it was so high priced," said a trader, adding, "Now canola is outperforming the U.S. markets the other way."

Canada's tight supply situation remains another supportive influence, although the need to ration demand is thought to be well priced into the market for the time being.

About 17,400 canola contracts traded as of 11:43 EST.

Prices in Canadian dollars per metric ton at 11:43 EST:

 
 
                          Price      Change 
 
Canola            Mar     992.00    up 28.00 
 
                  May     976.50    up 24.60 
 
                  Jul     941.00    up 16.90 
 
                  Nov     800.70    up  6.20 
 
 
 

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

(END) Dow Jones Newswires

01-19-22 1215ET