ICE canola turning lower at midday Thursday

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was mostly weaker at midday Thursday, backing away from earlier advances in choppy trade.

Chart-based positioning was originally supportive, but the nearby November contract ran into resistance around C$620 per tonne for the second session in a row.

Gains in Chicago soyoil and European rapeseed underpinned the canola market, while soybeans were lower at midday.

Seasonal harvest pressure and increased farmer selling at the highs weighed on values. On the other side, end user bargain hunting and speculative short covering helped temper the gains with the canola market thought to be consolidating after trending higher for the previous three weeks.

An estimated 29,000 canola contracts traded as of 10:30 CDT.

Prices in Canadian dollars per metric tonne at 10:30 CDT:

Canola            Nov   611.40    dn  3.70

Jan   623.60    dn  2.50

Mar   635.50    dn  0.90

May   643.90    up  0.40