ICE canola correcting higher Thursday

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market was posting solid gains at midday Thursday, seeing a correction after posting sharp losses earlier in the week.

“Everything was just ready for a bounce,” said a trader, noting that there was no fresh fundamental news behind the strength. He added that gains in the Chicago soy complex were providing spillover support for canola.

European rapeseed and Malaysian palm oil futures were also stronger on Thursday, while the Canadian dollar held near unchanged.

Relatively favourable Prairie weather conditions kept a lid on the upside, with large old crop supplies also still overhanging the canola market.

An estimated 56,500 canola contracts traded as of 10:52 CDT.

Prices in Canadian dollars per metric tonne at 10:52 CDT:

Canola            Jul   636.50    up  19.40

Nov   658.60    up  16.60

Jan   664.50    up  15.00

Mar   668.60    up  13.40