ICE canola stronger, but running into resistance

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — ICE Futures canola contracts were holding onto gains at midday Thursday, but well off their session highs after running into resistance.

The May contract briefly traded above the psychological C$600 per tonne level before backing away as selling came forward at the highs.

Gains in Chicago soyoil provided spillover support. European rapeseed and Malaysian palm oil futures were also higher on the day.

Canola remains attractively priced from an end user standpoint, although recently imposed Chinese tariffs on canola oil and meal, along with uncertainty over looming tariffs from the United States remained a bearish influence in the background.

An estimated 27,600 canola contracts traded as of 10:50 CDT.

Prices in Canadian dollars per metric tonne at 10:50 CDT:

Canola            May   596.20    up  7.30

Jul   603.00    up  8.10

Nov   600.30    up  4.70

Jan   608.90    up  5.10