By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 31 (MarketsFarm) – The ICE Futures canola market was mostly higher at midday Tuesday, in choppy activity as participants squared positions on the last trading day of the month.
Only the lightly traded nearby November contract was still lower as participants exit the front month ahead of its expiry.
The most-active January contract neared major technical support around C$680 per tonne in early trade, uncovering some buying interest. Speculators are holding large short positions in the market and could be looking to book some profits.
Gains in Chicago soybeans and a weaker tone in the Canadian dollar also provided underlying support for canola, although losses in Chicago soyoil and European rapeseed did account for some spillover selling pressure.
Crush margins remain historically wide, keeping domestic processors on the buy side of the market.
An estimated 20,700 canola contracts traded as of 10:37 CDT.
Prices in Canadian dollars per metric tonne at 10:37 CDT:
Canola Nov 662.00 dn 6.00
Jan 687.90 up 0.40
Mar 696.90 up 0.70
May 704.20 up 1.40
