ICE canola up at midday, but off session highs

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market held onto small gains at midday Wednesday but was trading well off its session highs.

The old crop July contract briefly moved above the psychological C$700 per tonne mark before running into resistance.

Increased optimism over possible trade talks between the United States and China underpinned Chicago soybeans and provided some spillover support to canola. However, soyoil, European rapeseed and Malaysian palm oil were lower.

Tightening supplies remained supportive for canola, with dryness in parts of Western Canada as seeding gets underway also being followed closely.

Statistics Canada is set to release updated stocks data as of March 31 on Thursday.

An estimated 18,000 canola contracts traded as of 10:42 CDT.

Prices in Canadian dollars per metric tonne at 10:42 CDT:

Canola            Jul   695.60    up  1.90

Nov   657.10    up  1.20

Jan   665.90    up  1.10

Mar   676.50    up  4.00