ICE Canola Hits New Contract Highs Yet Again

"Canola just remains unbelievably strong," said a Winnipeg-based broker. He said much of the strength in canola was tied to the gains in CBOT soyoil, which was the leader of the vegoil markets.

Speculative fund buying was another feature in canola, as the bullish charts had them adding to their long positions, according to the broker.

Small amounts of farmer selling did temper the upside, although the broker said farmers were generally content to wait on the sidelines for the time-being in anticipation of continued strength in the market.

Ideas that canola was starting to look overbought also kept the gains in check. Some positioning ahead of next week’s USDA supply/demand reports was also a feature.

The Canadian dollar was trading near parity with its US counterpart on Friday, putting some downward pressure on canola values.

At 10:33 CDT, about 5,500 canola contracts had changed hands, with spreading only a small feature.

Western barley futures were untraded and unchanged at midsession.

Prices in Canadian dollars per metric ton at 10:33 CDT: