ICE canola rising at midday Tuesday

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — ICE Futures canola contracts were stronger at midday Tuesday, seeing a continued correction higher amid oversold conditions.

Cash basis levels in the countryside and the ports have improved lately, which an analyst saw as a sign that recent weakness in the futures was tied more to speculative selling than the fundamentals.

Chicago soyoil and European rapeseed futures were stronger on the day, providing additional support. However, soybeans were weaker and Malaysian palm oil was trading closer to unchanged.

Uncertainty over looming tariffs from the United States, set to go into effect on April 2, remained a bearish influence in the background.

An estimated 29,100 canola contracts traded as of 10:42 CDT.

Prices in Canadian dollars per metric tonne at 10:42 CDT:

Canola            May   579.10    up  6.90

Jul   588.20    up  5.80

Nov   591.80    up  8.10

Jan   599.90    up  9.50