ICE canola up with ‘turnaround Tuesday’ buying

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was posting solid gains at midsession in “turnaround Tuesday” activity amid ideas Monday’s losses were overdone. Strength in outside markets provided spillover support.

Chicago soyoil, European rapeseed and Malaysian palm oil were all up on the day, while advances in crude oil and a softer tone in the Canadian dollar also underpinned the market.

Tight old crop supplies and production uncertainty for the new crop contributed to the gains in canola.

However, Monday’s sharp drop was damaging from a chart standpoint, and canola was running into resistance at former support levels.

An estimated 32,400 canola contracts traded as of 10:41 CDT.

Prices in Canadian dollars per metric tonne at 10:41 CDT:

Canola            Jul   695.10    up  8.30

Nov   678.60    up 10.70

Jan   685.70    up 10.10

Mar   692.70    up 10.40