ICE canola correcting higher Wednesday

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market was posting small gains Wednesday morning, seeing a modest correction after falling sharply lower the previous three sessions.

The November contract was trading back above the psychological C$620 per tonne level in early trade, which was supportive from a technical standpoint.

Gains in Chicago soybeans and soyoil provided spillover support, with European rapeseed also higher on the day as a rally in crude oil spilled into the vegetable oil markets.

Hot and dry Prairie weather forecasts were also supportive, although milder conditions are expected in the latter half of August and crop prospects remain relatively favourable overall.

About 15,000 canola contracts had traded as of 8:47 CDT.

Prices in Canadian dollars per metric ton at 8:47 CDT:

Canola            Nov   622.80    up  5.10

Jan   630.30    up  5.30

Mar   637.50    up  6.00

May   641.50    up  5.80