ICE canola holding onto small gains in choppy activity

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market was posting small gains at midday Wednesday in choppy trade.

The November contract had traded as high as C$579.00 per tonne overnight before selling came forward to take prices below the psychological C$570.00 per tonne mark and some buying interest resumed. Chicago soyoil was lower after posting gains in the overnight session.

While farmers remain reluctant sellers at the current price levels, some seasonal harvest pressure was likely weighing on values. Manitoba’s canola harvest was 28 per cent complete as of Sept. 10, which was down slightly from 35 per cent done at the same point a year ago, according to the latest provincial crop report.

European rapeseed was higher on the day, with ideas Canadian canola remains cheap compared to its European counterpart providing some support.

An estimated 17,400 canola contracts traded as of 10:56 CDT.

Prices in Canadian dollars per metric tonne at 10:56 CDT:

Canola            Nov   571.00    up  1.00

Jan   584.30    up  1.10

Mar   595.80    up  0.90

May   604.70    up  0.70