ICE Canola Futures Climb As Outside Oilseeds Rally

Analysts noted that the markets these days are all about the astonishing move higher in wheat and the cascading spillover bullish effect it is causing across the entire grain and oilseed complex.

Soybean futures on the eCBOT were up in overnight activity as were Malaysian palm oil and European rapeseed values. Wheat futures on the eCBOT led the rally climbing its 60 US cent per bushel daily limit.

The advances in canola were also being encouraged by the higher calls for CBOT soybean and soyoil values with the start of the North American day session, brokers said.

The need to keep a weather premium built into canola was helping to keep a firm floor under the commodity. Steady domestic crusher demand and the pricing of old export business to Japan was also helping to fuel some of the upward price action, traders said.

The penetration of technical resistance levels was also generating some of the support seen in canola early Thursday, brokers said.

Some position evening ahead of next week’s USDA crop report was also expected. That report is one of the more important reports released by USDA this year as it gives the first in-field estimate of US soybean and corn output, analysts said.

The upside in canola was being limited by scale up profit-taking and by steady hedge selling by grain companies. The increased selling by the commercial sector is reflecting the pick up in farmer deliveries of canola into the cash pipeline, brokers said.

As of 9:11 EDT, there were 1,597 canola contracts traded.

As of 9:11 EDT, no western barley contracts had been traded.