ICE canola weakens Tuesday on profit-taking after recent gains

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was posting small losses at midday Tuesday, seeing some consolidation after climbing higher the previous two sessions.

The March contract was holding above its 200-day moving average, with the former resistance level now providing support at around C$640 per tonne.

Gains in Chicago soyoil and a steady tone in European rapeseed were supportive for canola, although soybeans and Malaysian palm oil were both softer on the day.

While canola was due for a profit taking correction, an analyst noted that “the fundamentals look good.” He expected the nearby path of least resistance was still pointed higher, although cautioned that the threat of tariffs under the incoming Trump administration in the United States was also still overhanging the market.

An estimated 30,300 canola contracts traded as of 10:40 CST.

Prices in Canadian dollars per metric tonne at 10:40 CST:

Canola            Mar   644.90    dn  2.80

May   654.30    dn  1.30

Jul   660.10    dn  0.60

Nov   639.30    dn  0.50