ICE canola correcting higher

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger at midday Friday, taking back some of Thursday’s losses amid ideas the selloff was overdone.

The old crop July contract was back above C$700 per tonne, which was supportive from a technical standpoint.

“Canola is on sale,” said an analyst, adding that end users were likely bargain hunting after Thursday’s declines. Tight supplies and the need to ration demand also remained supportive.

Chicago soyoil futures were holding near unchanged at midday, seeing some consolidation after posting limit-down losses on Thursday.

The Canadian dollar was weaker at midsession.

An estimated 36,500 canola contracts traded as of 11:22 CDT.

Prices in Canadian dollars per metric tonne at 11:22 CDT:

Canola            Jul   704.90    up 10.50

Nov   676.00    up  8.00

Jan   682.80    up  7.50

Mar   689.30    up  7.40