By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 4 (MarketsFarm) – The ICE Futures canola market was stronger at midday Monday, hitting its highest levels in over a month as solid end-user demand and bullish technical signals provided support.
The tight supply situation means end users with sales on the books are paying up in order to secure coverage, according to an analyst.
Overnight gains in European rapeseed and Malaysian palm oil futures provided spillover support for canola. Chicago Board of Trade soyoil futures were also stronger, with a rally in crude oil supportive for the vegetable oil markets in general.
On the other side, 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 10:40 CDT.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Price Change
Canola Nov 913.80 up 10.70
Jan 897.70 up 9.30
Mar 881.90 up 9.10
May 853.80 up 7.30
