ICE canola correcting higher to start week

Glacier FarmMedia | MarketsFarm — ICE canola futures were stronger Monday morning, taking back most of Friday’s losses with gains in the Chicago soybeans and soyoil providing support.

The November contract briefly tested chart support at its 50-day moving average in overnight trade but was well above that level as the day session got underway.

The United States Department of Agriculture is scheduled to release updated acreage and stocks data at 11:00 a.m. CDT. Any surprises in the reports should set the tone in the markets later in the day.

Canada and the U.S. have agreed to resume trade talks for the time being after U.S. President Trump threatened ending negotiations on Friday due to concerns over Canada’s digital sales tax. Canada has now promised to rescind the tax that had been set to come into effect today.

Canadian markets will be closed Tuesday for Canada Day, while markets in the U.S. will be closed for Independence Day on Friday. The futures markets could see some volatility in thinner volumes as participants move to the sidelines.

About 14,300 canola contracts had traded as of 8:42 CDT.

Prices in Canadian dollars per metric tonne at 8:42 CDT:

Canola            Nov   705.10    up 12.20

Jan   714.20    up 12.10

Mar   718.80    up  9.00

May   725.70    up  9.20