ICE canola correcting higher Monday

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market was posting solid gains at midday Monday, recovering most of Friday’s losses to start the week.

Speculators covering short positions and end-user bargain hunting at the nearby lows contributed to the gains.

With canola prices at a discount to European rapeseed and other oilseeds, “if you’re interested in importing canola this year, right now is the time to buy,” said an analyst.

Gains in Chicago soyoil and European rapeseed futures were also supportive.

Canadian canola stocks as of July 31, 2024, came in at 3.1 million tonnes, according to a report from Statistics Canada. That was up by 66.9 per cent on the year, but in line with trade expectations and did little to move the market.

Uncertainty over Chinese demand going forward tempered the advances, as China officially launched an anti-dumping probe into Canadian canola.

An estimated 29,900 canola contracts traded as of 10:50 CDT.

Prices in Canadian dollars per metric tonne at 10:50 CDT:

Canola            Nov   583.20    up  14.00

Jan   595.20    up  14.30

Mar   606.30    up  14.10

May   614.60    up  14.10