ICE canola uptrend continues, but running into resistance

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — ICE Futures canola contracts were stronger at midday Wednesday, continuing their upward trend of the past four weeks as the market works to ration demand.

The most-active July contract was testing psychological resistance at C$680 per tonne, with selling coming forward at the highs.

Chicago soyoil and European rapeseed futures were both posting small gains, while Malaysian palm oil was softer on the day.

The Canadian dollar was stronger at midday, as currency traders reacted to the latest interest rate decision from the Bank of Canada leaving the key overnight rate unchanged at 2.75 per cent.

An estimated 30,500 canola contracts traded as of 10:13 CDT.

Prices in Canadian dollars per metric tonne at 10:13 CDT:

Canola            May   672.90    up  4.00

Jul   679.90    up  3.40

Nov   651.10    up  2.10

Jan   657.20    up  2.00