WINNIPEG, Manitoba--ICE canola futures were lower at mid-session on Monday, in what a trader deemed to be rangebound movement.
"[Canola] will be stronger for a few days and then weaker for a few days," the trader said, noting that product values were currently down C$3 to C$4 per ton.
He also pointed to other traders who were "oscillating back and forth, playing the spreads."
The trader said the cooler weather this week in Argentina will have some effect on vegetable oils. He stressed that while this is an important factor, the markets were overplaying it.
Gains in global crude oil prices were lending support to veg oils, but there were sharp declines in European rapeseed and Malaysian palm oil turned lower. While Chicago soymeal was down, there were small upticks in soybeans while soyoil was relatively steady.
The Canadian dollar was stronger on Monday, which the trader said weighed on canola values. The loonie jumped to 74.80 U.S. cents, compared to Friday's close of 74.15.
Approximately 17,750 canola contracts were traded as of 11:43 a.m. ET.
Prices in Canadian dollars per metric ton at 11:43 a.m. ET:
Canola Price Change
Mar 863.30 dn 5.60
May 859.10 dn 7.20
Jul 858.50 dn 7.90
Nov 827.00 dn 8.90
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
01-09-23 1302ET
