ICE canola showing some strength at midday

By Phil Franz-Warkentin

Glacier FarmMedia — The ICE Futures canola market was stronger at midday Thursday, recovering from early losses with speculative positioning a feature.

Tight old crop supplies and production uncertainty for the new crop provided underlying support. Chicago soybeans were also up on the day, but soyoil was lower.

A stronger tone in the Canadian dollar was also bearish for canola, cutting into crush margins and making exports less attractive for international buyers.

Canola crush margins have deteriorated in recent weeks, which a trader said was a sign the market was likely overpriced at current levels.

An estimated 26,600 canola contracts traded as of 10:57 CDT.

Prices in Canadian dollars per metric tonne at 10:57 CDT:

Canola            Jul   696.80    up  1.80

Nov   678.80    up  1.90

Jan   685.10    up  0.90

Mar   692.10    up  1.70