Despite surpassing the $900 per tonne mark at times during the week ended Wednesday, ICE Futures’ January canola contract never settled above that psychological level.
Rising prices prior to the weekend later gave away to selling pressure after the weekend due to a correction in vegetable oil prices, according to broker Ken Ball of PI Financial in Winnipeg. But despite falling as much as $30 per tonne, canola still showed relative strength.
“The product side fell off about $40. That again is canola showing…it’s undervalued and it shouldn’t go down as easily as when the markets go down,” Ball said. “(Canola) should see some upside potential as long as vegetable oil prices stay reasonably steady.”
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