ICE canola posting solid gains for third day

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger for the third session in a row Wednesday morning, as the futures continued to correct off the nearby lows hit last week amid ideas those losses were overdone.

End user bargain hunting and chart-based positioning contributed to the gains, with advances in European rapeseed also providing some spillover support.

However, a softer tone in the Chicago soy complex put some pressure on values. Malaysian palm oil was also lower on the day.

The ongoing tariff concerns that may disrupt trade with both China and the U.S. kept the canola market on edge, tempering the upside.

About 20,500 canola contracts had traded as of 8:52 CDT.

Prices in Canadian dollars per metric ton at 8:52 CDT:

Canola            May   584.20    up 10.00

Jul   594.60    up  8.70

Nov   598.50    up  6.80

Jan   604.80    up  5.30