ICE Canola Midday: Liquidating shorts likely underpinning surge
Added support from veg oils
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were up sharply at midsession Monday, most likely due to the speculative funds liquidating their short positions according to an analyst.
The November canola contract has well exceeded its resistance level of C$650 per tonne with the next level believed to be around C$685 to C$695.
While a Prairie heatwave continued to pose a threat to canola in the blooming stage, the analyst stressed that “in no way shape or form is this a disaster.” He said most canola was podding with the yields pretty much set and that scattered showers were helping in areas with a current lack of precipitation.
Sharp gains in the Chicago soy complex added to canola’s increases, with more support coming from higher values in European rapeseed and Malaysian palm oil. Slight declines in crude oil were putting some pressure on further advances in the oilseeds.
Alberta reported on Friday that its canola was 72 per cent good to excellent provincewide but cautioned that the heat could pull down the rating.
The Canadian dollar was lower at late Monday morning, with the loonie slipping to 72.69 U.S. cents compared to Friday’s close of 72.85.
Approximately 38,750 canola contracts were traded as of 10:36 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 669.30 up 23.10 Jan 674.30 up 22.60 Mar 676.90 up 21.20 May 675.60 up 17.50
