ICE Canola Midday: Dryness, Limited Supplies Fueling Increases

WINNIPEG, Manitoba--Intercontinental Exchange (ICE) canola futures were higher at midday Tuesday, with more deferred positions seeing the largest gains.

"There's the debate about how dry it is in Western Canada, the fact that seed supplies are limited [and] the fact that other competing crops are extremely profitable," explained a trader.

As well, he noted that crushers and other buyers have become concerned about canola supplies and they're looking to purchase what they can now with the expectation that prices will continue to increase.

Another major feature continued to be the rolling out of the November contract into January, by both commercials and speculators.

Additional support for canola was coming from gains in the Chicago soy complex, although increases in soyoil were slight.

Strong upticks in European rapeseed bolstered the Canadian oilseed, while there were slight decreases Malaysian palm oil.

With weakness in the U.S. dollar, the Canadian dollar was higher, which also weighed on canola values. The loonie pushed to 80.95 U.S. cents compared to Monday's close of 80.81.

Approximately 18,650 canola contracts were traded as of 11:39 EDT.

Prices in Canadian dollars per metric ton at 11:39 EDT:

                        Price            Change
Canola      Nov         929.00          up 7.90
            Jan         924.60          up 9.30
            Mar         912.00          up 11.90
            May         889.00          up 13.80

Source: Commodity News Service Canada, news@marketsfarm.com


  (END) Dow Jones Newswires
  10-19-21 1206ET
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