ICE canola correcting higher Wednesday

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger at midday Wednesday, taking back some of Tuesday’s losses amid ideas the downturn was overdone. End-user bargain hunting, as Canadian canola remains attractively priced compared to most other global oilseeds, contributed to the gains.

The move back above C$600 per tonne in the nearby November contract was supportive from a chart standpoint, with the more-active January contract testing its 20- and 100-day moving averages.

European rapeseed was also stronger on the day, although weakness in Chicago soybeans and soyoil tempered the upside in canola.

An estimated 40,600 canola contracts traded as of 10:42 CDT.

Prices in Canadian dollars per metric tonne at 10:42 CDT:

Canola            Nov   605.00    up  6.90

Jan   616.00    up  6.20

Mar   627.90    up  7.00

May   636.80    up  7.50