By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 1 (MarketsFarm) – The ICE Futures canola market was stronger Monday morning, recovering from overnight losses in choppy trade.
Gains in Chicago Board of Trade soyoil and a softer tone in the Canadian dollar contributed to the buying interest in canola, as crush margins saw some improvement.
Ongoing concerns over tight old crop supplies and the need to ration demand going forward remained supportive as well.
However, CBOT soybeans were weaker in early activity, which put some pressure on canola.
Overbought price signals, as canola hovers near multi-year highs, also kept a lid on the upside. The nearby March contract traded as high as C$699.90 per tonne at one point, but was unable to break above the psychological C$700 per tonne level.
About 2,400 canola contracts had traded as of 8:45 CST.
Prices in Canadian dollars per metric ton at 8:45 CST:
Price Change
Canola Mar 695.20 up 3.60
May 671.30 up 2.30
Jul 646.50 up 1.80
Nov 557.30 up 2.00
