ICE canola up at midday Tuesday

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger at midday Tuesday, as bullish chart signals and gains in outside markets provided support.

Fresh optimism over a possible announcement on renewable fuel blending obligations in the United States this week underpinned the Chicago soy complex, which contributed to the firmer tone in canola. European rapeseed and Malaysian palm oil were also up on the day.

In addition, most technical indicators remain pointed higher for canola.

Tightening supplies and the need to ration demand were supportive for the old crop July contract, while a weather premium was starting to build in the new crop months due to dryness concerns in parts of the Prairies.

The Canadian dollar was weaker, backing away from the seven-month highs hit relative to its U.S. counterpart on Monday.

An estimated 26,400 canola contracts traded as of 10:39 CDT.

Prices in Canadian dollars per metric tonne at 10:39 CDT:

Canola            Jul   726.80    up  8.30

Nov   690.50    up  2.50

Jan   696.50    up  2.60

Mar   702.00    up  2.50