ICE canola holding onto gains at midday

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was holding onto small gains midday Tuesday, although well off its session highs as Chicago soyoil backed away from its own increases.

January canola hit a session high of C$596.30 per tonne but was about C$10 off that level by midsession.

Malaysian palm oil hit fresh contract highs in overnight trade, providing spillover support for canola. European rapeseed was also sharply higher, with Canadian canola looking underpriced compared to the European market.

Statistics Canada releases updated production estimates on Thursday, Dec. 5, with most market participants expecting a sizeable cut to canola production from the 18.98 million tonnes forecast in September.

An estimated 29,000 canola contracts traded as of 10:29 CST.

Prices in Canadian dollars per metric tonne at 10:29 CST:

Canola            Jan   586.80    up  5.20

Mar   599.40    up  5.70

May   609.10    up  4.50

Jul   609.20    up  1.40