By Phil Franz-Warkentin
Glacier FarmMedia | MarketsFarm – The ICE Futures canola market was stronger at midday Thursday, recovering from overnight losses as gains in Chicago soyoil provided spillover support.
A trader said the canola had no real direction but was “oscillating back and forth” as speculative fund traders adjusted positions.
End-user bargain hunting, as Canadian canola remains attractively priced compared to most other global oilseeds, contributed to the strength at midday.
The move back above C$600 per tonne in the nearby November contract was also supportive from a chart standpoint.
Gains in European rapeseed futures were also supportive, although Malaysian palm oil was softer. Increased farmer selling at the highs kept a lid on the upside.
An estimated 36,000 canola contracts traded as of 10:40 CDT.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Canola Nov 607.40 up 7.80
Jan 617.00 up 6.40
Mar 627.50 up 5.40
May 635.30 up 4.70
