By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 5 (MarketsFarm) – The ICE Futures canola market was sharply higher at midday Tuesday, as rallies in outside markets provided support.
Canola climbed to the top end of its well established range, with speculative buying building on itself and adding to the advances.
Crude oil hit its strongest levels in seven years on Tuesday, which spilled into the vegetable oil markets as well. Malaysian palm oil and European rapeseed futures both hit fresh contract highs, while Chicago Board of Trade soyoil futures climbed to their strongest levels in over a month.
Canada’s tight supply situation and need to ration demand added to the firmer tone in canola.
However, strength in the Canadian dollar put some pressure on canola. Ideas that the market is overpriced also tempered the advances.
About 15,600 canola contracts traded as of 10:48 CDT.
Prices in Canadian dollars per metric tonne at 10:48 CDT:
Price Change
Canola Nov 925.60 up 18.50
Jan 911.70 up 19.30
Mar 895.70 up 19.30
May 871.10 up 20.60
