ICE canola continues higher Thursday

By Phil Franz-Warkentin

Glacier FarmMedia — The ICE Futures canola market was stronger at midday Thursday, seeing a continuation of Wednesday’s rally as gains in outside markets provided support.

Malaysian palm oil hit fresh contract highs while Chicago soyoil and European rapeseed futures were also stronger.

Ideas that Canada’s canola production was likely well below the official 19 million-tonne estimate were also supportive, with export customers also thought to be front-loading their purchases.

However, fears over possible Chinese tariffs on Canadian canola remained a bearish influence. Chart resistance was also holding to the upside, as speculative selling was coming forward on any moves higher.

An estimated 31,000 canola contracts traded as of 10:48 CST.

Prices in Canadian dollars per metric tonne at 10:48 CST:

Canola            Jan   654.50    up  6.90

Mar   666.60    up  7.40

May   674.60    up  7.70

Jul   678.90    up  7.90