ICE canola correcting higher

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger at midday Thursday, correcting off nearby lows amid ideas the recent losses were overdone.

The most-active March contract was back above C$600 per tonne, which was supportive from a chart standpoint. Tightening supply projections and solid end user demand also underpinned canola, although recent weakness in the Chicago soy complex continued to overhang the market.

Soyoil was trading near unchanged at midsession, providing little direction. Gains in European rapeseed were supportive, as canola remains underpriced compared to the oilseed, while Malaysian palm oil was weaker.

The Canadian dollar was stronger at midsession, but still well below 70 U.S. cents.

An estimated 28,000 canola contracts traded as of 10:53 CST.

Prices in Canadian dollars per metric tonne at 10:53 CST:

Canola            Jan   598.70    up  11.00

Mar   604.80    up  10.50

May   611.10    up  10.10

Jul   613.30    up  10.00