ICE canola continues higher to start new week

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — ICE Futures canola contracts were stronger at midday Monday, seeing a continuation of last week’s rally as tightening supply projections and bullish chart signals underpinned the market.

The gains in canola came despite losses in the Chicago soy complex, with Malaysian palm oil also weaker on the day. Gains in European rapeseed and a softer tone in the Canadian dollar were supportive.

Canola contracts were trading above most major moving averages, with speculators actively covering short positions in the latest commitments of traders data.

An estimated 32,150 canola contracts traded as of 10:44 CDT.

Prices in Canadian dollars per metric tonne at 10:44 CDT:

Canola            May   664.70    up  4.00

Jul   671.80    up  3.00

Nov   646.00    up  3.20

Jan   652.60    up  2.60