ICE canola continues higher Wednesday

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — ICE Futures canola contracts were stronger at midday Wednesday, continuing to correct off nearby lows as the oilseed remains attractively priced compared to other options.

Gains in Chicago soyoil provided spillover support, with Malaysian palm oil also firmer on the day. European rapeseed was mixed, but the spread between canola and rapeseed remains historically wide, which analysts expected should be encouraging European demand.

The May canola contract remained below most of its major moving averages, with many technical indicators still pointing lower despite the corrective bounce over the past three sessions.

Uncertainty over looming tariffs from the United States, set to go into effect on April 2, remained a bearish influence in the background.

An estimated 34,800 canola contracts traded as of 10:40 CDT.

Prices in Canadian dollars per metric tonne at 10:40 CDT:

Canola            May   583.90    up  5.70

Jul   591.40    up  3.40

Nov   593.20    up  2.70

Jan   601.50    up  3.40