ICE canola turning higher in choppy trade

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was mostly higher Monday morning, recovering from overnight losses in choppy trade.

Weakness in the Chicago soy complex accounted for some spillover selling pressure, with European rapeseed and Malaysian palm oil also down to start the week.

However, tightening supply projections and the need to ration demand remained supportive for canola from a fundamental standpoint.

Managed money fund traders added to their net short position in canola futures during the week ended Jan. 21, taking it to around 52,000 contracts, according to the latest Commitments of Traders Report from the Commodity Futures Trading Commission

United States President Donald Trump has threatened to impose 25 per cent tariffs on all Canadian imports as early as Feb. 1, keeping some caution in the grain and oilseed markets.

About 14,000 canola contracts had traded as of 8:45 CST.

Prices in Canadian dollars per metric ton at 8:45 CST:

Canola            Mar   639.30    up  0.60

May   648.30    up  0.70

Jul   652.90    up  1.00

Nov   636.70    dn  0.30