ICE canola climbing higher Tuesday morning

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger Tuesday morning, as activity resumed in the United States markets after the Memorial Day long weekend.

Gains in Chicago soyoil and soybeans provided spillover support, with European rapeseed and Malaysian palm oil also up on the day.

Bullish chart signals contributed to the gains, as most technical indicators remain pointed higher. Tightening supplies and the need to ration demand were supportive for the old crop July contract, while a weather premium was starting to build in the new crop months due to dryness concerns in parts of the Prairies.

The Canadian dollar was weaker in early activity, backing away from the seven-month highs hit relative to its U.S. counterpart on Monday.

About 17,000 canola contracts had traded as of 8:50 CDT.

Prices in Canadian dollars per metric ton at 8:50 CDT:

Canola            Jul   730.40    up 11.90

Nov   694.00    up  6.00

Jan   699.90    up  6.00

Mar   705.70    up  6.20