ICE Midday: Canola maintains upward momentum

Glacier FarmMedia | MarketsFarm – The ICE Futures canola market extended its rally on Monday, despite mixed sentiment in comparable oils.

European rapeseed were higher to start the week, while Malaysian palm oil and Chicago soyoil was lower. Crude oil gained more than US$1 per barrel due to Middle East tensions and new stimulus to kickstart the Chinese economy.

One analyst said the markets may be entering “smiley holiday trade”, while another added that canola could rally even higher due to continued Chinese buying as well as strong basis levels and spreads.

The Canadian dollar was up nearly one-tenth of a United States cent compared to Friday’s close.

About 30,900 contracts have traded at 10:14 CST. Prices in Canadian dollars per metric tonne:

Price          Change

Jan 612.30     up  3.30

Mar 620.80     up  3.20

May 627.60     up  2.40

Jul 631.30     up  3.50