ICE canola climbing higher to start week

Glacier FarmMedia — The ICE Futures canola market was stronger Monday morning, seeing a continuation of Friday’s rally.

Chicago soyoil futures gapped higher in overnight activity, accounting for much of the spillover buying interest in canola, as markets remained supported by the latest biofuel policy developments out of the United States.

Biofuel blending proposals from the U.S. Environmental Protection Agency announced Friday beat market expectations and should lead to increased demand for vegetable oils in the country.

Chart-based positioning contributed to the advances in canola, although values were starting to look overpriced by some technical metrics.

The Canadian dollar was stronger in early activity, putting some pressure on canola values.

About 54,500 canola contracts had traded as of 8:45 CDT.

Prices in Canadian dollars per metric ton at 8:45 CDT:

Canola            Jul   741.10    up  10.10

Nov   737.10    up  13.90

Jan   746.60    up  16.30

Mar   752.70    up  17.60