ICE canola continues higher, facing resistance

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm–The ICE Futures canola market was stronger at midday Tuesday, but was running into major resistance as selling came forward at the highs.

Gains in Chicago soybeans and soyoil provided spillover support for canola. European rapeseed and Malaysian palm oil were also higher on the day. Dryness hampering soybean seeding in Brazil accounted for some of the strength in the soy market.

November canola briefly traded above chart resistance at C$600 per tonne before the buying subsided and profit-taking came forward to temper the gains.

Grain workers at the Port of Vancouver went on strike Tuesday morning. A prolonged work stoppage would be “devasting,” according to a statement from the Grain Growers of Canada that estimated the strike could cost about C$35 million a day in lost exports.

An estimated 28,700 canola contracts traded as of 10:35 CDT.

Prices in Canadian dollars per metric tonne at 10:35 CDT:

Canola            Nov   599.00    up  11.70

Jan   611.90    up  11.20

Mar   623.30    up  10.60

May   631.60    up  10.50