By Phil Franz-Warkentin
Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger at midday Thursday, testing major chart resistance as gains in crude oil and world vegetable oil markets provided support.
Malaysian palm oil futures touched fresh contract highs in overnight activity, with European rapeseed and Chicago soyoil also stronger. However, losses in soybeans put some pressure on the canola market.
The November contract touched its highest level in two months and was holding above the psychological C$620 per tonne level at midsession. A close above that price point would be constructive for a technical standpoint.
Uncertainty over the size of Canada’s canola crop, amid mixed yield reports as harvest operations progress across the Prairies, provided additional support.
The Canadian dollar was weaker at midday, falling below 74 U.S. cents.
An estimated 34,500 canola contracts traded as of 10:38 CDT.
Prices in Canadian dollars per metric tonne at 10:38 CDT:
Canola Nov 620.70 up 2.80
Jan 634.60 up 3.10
Mar 646.50 up 3.60
May 654.20 up 4.50
