ICE canola rising with soyoil midday Thursday

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm – The ICE Futures canola market was stronger at midday Thursday, recovering from overnight losses as gains in Chicago soyoil provided spillover support.

A trader said the canola had no real direction but was “oscillating back and forth” as speculative fund traders adjusted positions.

End-user bargain hunting, as Canadian canola remains attractively priced compared to most other global oilseeds, contributed to the strength at midday.

The move back above C$600 per tonne in the nearby November contract was also supportive from a chart standpoint.

Gains in European rapeseed futures were also supportive, although Malaysian palm oil was softer. Increased farmer selling at the highs kept a lid on the upside.

An estimated 36,000 canola contracts traded as of 10:40 CDT.

Prices in Canadian dollars per metric tonne at 10:40 CDT:

Canola            Nov   607.40    up  7.80

Jan   617.00    up  6.40

Mar   627.50    up  5.40

May   635.30    up  4.70