ICE canola posting gains early Tuesday

Glacier FarmMedia — The ICE Futures canola market was holding onto small gains Tuesday morning, although activity was choppy as values ran into resistance to the upside.

After rallying sharply higher for two straight sessions on the back of shifting biofuel policies out of the United States, canola was thought to be due for a correction from a chart standpoint.

Chicago soyoil was weaker in early trade, accounting for some spillover selling pressure in the Canadian oilseeds. However, European rapeseed and Malaysian palm oil were higher.

Tight old crop supplies and weather uncertainty for the new crop remained supportive underneath the market.

About 24,700 canola contracts had traded as of 8:46 CDT.

Prices in Canadian dollars per metric ton at 8:46 CDT:

Canola            Jul   743.50    up  0.40

Nov   737.80    up  1.90

Jan   746.10    up  1.60

Mar   751.80    up  1.50