ICE Canada Review: Canola Surges on Oversold Ideas

Market watchers said most of the buying was coming from speculative accounts, after specs had gotten out of the market earlier in the week.

Strength in the CBOT soy complex and overnight gains by European rapeseed added to the strength of canola, brokers said.

There were no reports of fresh export business, although experts said the pricing of old export business was providing a solid floor for values.

Gains were restricted by overnight losses posted in Malaysian palm oil, market watchers said.

As well, a Winnipeg-based trader said farmer selling was another factor limiting the upside, as he said ‘the break (in prices) shocked a few people,’ which persuaded some producers to move product out of their bins.

About 28,563 contracts were traded on Thursday, which compares with Wednesday, when an estimated 22,654 contracts changed hands. Spreading accounted for about 23,890 of the contracts traded.

Western barely futures were unchanged and untraded Thursday.

Settlement prices are in Canadian dollars per metric ton.