By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 3 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Thursday, breaking above major chart resistance as gains in Chicago Board of Trade soyoil and persistent Prairie weather concerns encouraged speculative short-covering.
“The market has a definite upward bias,” said a Winnipeg-based trader adding “based on the weather we’ve had I don’t know why anybody would want to be short right now.”
The November canola contract had held in a sideways trading range for the past three months, with resistance at roughly C$456 per tonne. The contract climbed above that level on Thursday to hit an inter-session high of C$461 per tonne.
However, canola was outpacing CBOT soybeans to the upside, which could limit the advances. Large old crop supplies and a lack of aggressive end user demand also put some pressure on values.
About 21,000 canola contracts traded as of 10:38 CDT, with intermonth spreading a feature.
Prices in Canadian dollars per metric tonne at 10:38 CDT:
Price Change
Canola Nov 459.70 up 3.70
Jan 467.80 up 3.30
Mar 475.90 up 2.80
May 482.70 up 2.40
