ICE Canada Morning Comment: Canola swings upward
Bargain hunting, short covering underpinning increases
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were on the rise Thursday morning following gains in the overnight session.
End-user bargain hunting and speculative short covering provided support.
However, pressure on canola was coming from declines in the Chicago soy complex. Malaysian palm oil was relatively steady while European rapeseed was mostly higher. Increases in crude oil were spilling over into the oilseeds.
The November canola contract remained above or near most of its major support levels and short of its 200-day moving average.
Canola crush margins nudged a little higher with the November positions between C$122 to C$127 per tonne above the futures.
The Canadian dollar was weaker on Thursday morning with the loonie falling to 72.72 U.S. cents compared to Wednesday’s close of 73.05.
Approximately 10,100 contracts were traded by 8:39 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Nov 618.90 up 3.80 Jan 630.50 up 4.40 Mar 640.80 up 4.40 May 646.90 up 3.40
