WINNIPEG, Manitoba--Intercontinental Exchange (ICE) canola futures were slightly higher at midday Thursday, in choppy trading that wasn't getting a lot of direction from other markets.
A trader commented that canola crashed by C$7 to C$9 per ton at Wednesday's close, but still finished a little stronger.
"The markets are waiting for a 'new fuel,' something they can focus on," he said, suggesting that could be Brazil. The seasonal rains have yet to fall over the drought-stricken country.
Meanwhile, canola remains "crazy expensive" relative to other edible oils and the trader said that means there's no need for the Canadian oilseed to push higher.
"Unless the soy market is reignited by the Brazil situation," he noted.
Also, the tight supply situation with canola has eased somewhat following the Statistics Canada report from Aug. 30. That report increased ending stocks to about 1.7 million tons, well above earlier projections of 700,000 tons.
The Canadian dollar was lower and supportive of canola. The loonie was at 78.79 U.S. cents compared to Thursday's close of 79.05.
Approximately 10,200 canola contracts were traded as of 11:26 EDT.
Prices in Canadian dollars per metric ton at 11:26 EDT:
Price Change Canola Nov 880.00 up 0.20 Jan 872.20 up 0.40 Mar 859.90 up 1.53 May 842.70 up 1.10
Source: Commodity News Service Canada, firstname.lastname@example.org
(END) Dow Jones Newswires