ICE Canada Morning Comment: Canola pushing higher
Recent losses overdone
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were on the rise Monday morning amid ideas that recent losses were overdone.
As well, positioning ahead of Christmas and Boxing Day was a feature. The canola market will be closed both days while the United States futures markets will close only for Dec. 25.
The last trading day for January options is set for Dec. 27 with first notice day on Dec. 31.
The Canadian oilseed was reaping support from gains in Chicago soyoil, European rapeseed and Malaysian palm oil. However, slight losses in Chicago soybeans and soymeal tempered further increases in canola. A modest downturn in crude oil also limited the upside in the vegetable oils.
The March canola contract remained above its 20-day moving average as it approaches its 100-day average.
As canola crush margins stepped back, the March position stood a little short of C$107 per tonne above the futures.
The Canadian dollar was weaker on Monday morning, with the loonie at 69.32 U.S. cents compared to Friday’s close of 69.61.
Approximately 9,250 contracts were traded by 8:34 CST and prices in Canadian dollars per metric tonne were:
Price Change Canola Jan 615.10 up 6.00 Mar 618.0 up 4.20 May 624.70 up 5.30 Jul 625.70 up 6.30
