ICE Midday: Canola still rising despite trade tensions

Glacier FarmMedia | MarketsFarm – The ICE Futures canola market extended its rallies on Thursday, strengthened by vegetable oils and with the May contract remaining above the 20-, 50- and 100-day averages.

An analyst said the next resistance level for May canola is C$680 per tonne, adding that China needs additional sources for vegetable oil imports. Another analyst said the current trade situation may be a boon to Canadian canola despite Chinese tariffs on canola oil and meal.

Chicago soyoil, European rapeseed and Malaysian palm oil were in positive territory in the middle of trading. However, ongoing trade tensions threatening United States crude oil exports to China caused prices to drop by more than US$2 per barrel.

The Canadian dollar was up nearly three-quarters of a U.S. cent compared to Wednesday’s close.

About 30,000 canola contracts have traded at 10:23 CDT. Prices in Canadian dollars per metric tonne:

Price          Change

May 655.30     up  3.90

Jul 662.30     up  3.50

Nov 637.90     up  1.10

Jan 644.00     up  0.50