ICE Canola Midday: Getting stronger
Resistance likely at $670, maybe $690
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures continued to gain strength at midday Tuesday, gleaning support from increases in comparable oils.
Malaysian palm oil was setting new contract highs and European rapeseed were approaching its own highs.
As well, upswings in the Chicago soy complex were spilling over into canola especially sharp increases in soyoil. However, soymeal was stepping back. Crude oil remained on its upward trajectory, lending support to the vegetable oils.
An analyst suggested resistance for the January canola contract could be at C$670 or even C$690 per tonne. He also said the increases in canola could generate more short covering by the speculative funds.
By late Tuesday morning, the Canadian dollar bumped up to 72.35 U.S. cents compared to Monday’s close of 72.28.
Approximately 35,950 canola contracts were traded as of 10:20 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 631.10 up 11.00 Jan 641.50 up 10.60 Mar 652.80 up 10.60 May 660.30 up 10.50
