Canola Futures Bounce Back Amid Multiple Factors
ICE Canola futures continued their bounce back on Wednesday, attempting to recover from Tuesday's sharp losses. An analyst noted that it's hard to pinpoint a single factor contributing to canola's rise, but rather a combination of factors is at play.
The analyst pointed out that soyoil had a significant drop on Tuesday, only to rebound today. Additionally, Chicago soybeans are up sharply, with soymeal rising modestly, as well as European rapeseed and Malaysian palm oil.
Growing strength in crude oil is also contributing to the increase in vegetable oils. The analyst highlighted a gap between available old crop and the canola harvest, stating that there's decent demand for physical canola, but the new crop isn't ready yet.
The Canadian dollar was stronger late Wednesday morning, with the loonie at 72.35 U.S. cents, compared to Tuesday's close of 72.00.