ICE weekly outlook: Canola correcting off lows

Reading Time: < 1 minute

Published: February 5, 2020

, ,

ICE Futures March 2020 canola with 20-, 50- and 100-day moving averages. (Barchart)

MarketsFarm — The ICE Futures canola market fell sharply over the last half of January but have turned the corner during the first few trading days of February.

“I think we have room for some corrective gains,” MarketsFarm Pro analyst Mike Jubinville said of the recovery in canola.

The March contract hit a session low of $448.50 per tonne on Monday, but bounced higher by the close and continued higher in subsequent days to settle Wednesday at $461.70.

An overreaction to concerns over China’s novel coronavirus outbreak contributed to the declines and also to the eventual move higher, according to Jubinville.

Read Also

Scott Moe, left, talks to Western Producer reporter Sean Pratt at the Ag in Motion farm show near Langham, Saskatchewan. Photo: Paul Yanko

Moe’s outlook on Carney, trade challenges

Saskatchewan Premier Scott Moe is ready to turn the page and start working with Prime Minister Mark Carney on important shared issues for Saskatchewan and Canada, including agricultural issues, such as providing regulatory certainty in the renewable fuels market.

“In the big picture, it changes nothing in the global demand for food,” he added, noting canola, soybeans and other commodities that were caught up in the sell-off now look like a bargain for end users.

“I think canola will continue to be supported as long as we see these corrections continue in the vegetable oil markets,” said Jubinville.

However, he added, the general demand environment out of China remains uncertain.

Looking at the bigger picture, he said, “throwing aside the dramatic run-up we had in December and the big pullback in January, it’s still a rangebound market — that hasn’t changed.”

— Phil Franz-Warkentin reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

About the author

Phil Franz-Warkentin

Phil Franz-Warkentin

Editor - Daily News

Phil Franz-Warkentin grew up on an acreage in southern Manitoba and has reported on agriculture for over 20 years. Based in Winnipeg, his writing has appeared in publications across Canada and internationally. Phil is a trusted voice on the Prairie radio waves providing daily futures market updates. In his spare time, Phil enjoys playing music and making art.

explore

Stories from our other publications