ICE canola moving lower to start week

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was weaker at midday Monday, backing away from chart resistance as losses in Chicago soyoil weighed on values.

European rapeseed and Malaysian palm oil futures were also softer to start the week, although gains in crude oil and Chicago soybeans provided some support.

The Canadian dollar was showing some strength after trending lower for most of the previous month, putting some additional pressure on canola.

However, solid end user demand and a lack of significant farmer selling helped underpin the futures as canola exports continue to run well ahead of last year’s pace.

An estimated 26,400 canola contracts traded as of 10:50 CST.

Prices in Canadian dollars per metric tonne at 10:50 CST:

Canola            Jan   639.50    dn  6.40

Mar   651.40    dn  5.10

May   659.50    dn  4.20

Jul   663.80    dn  3.40