ICE Canola Up With Chart-Based Buying

By Phil Franz-Warkentin, Commodity News Service Canada

Nov. 29, 2012

Winnipeg – ICE Canada canola futures were stronger  Thursday morning, as supportive nearby technical signals helped the  market outpace soybeans to the upside.

Recent activity in canola has shifted the nearby bias to the  upside from a chart perspective, according to an analyst accounting  for some of the speculative buying interest in the market.

A lack of significant farmer selling together with steady end  user demand and concerns over tightening supplies provided underlying  support for canola as well, according to traders. Statistics Canada  releases its final production estimates for the year on December 5,  and some market participants are anticipating the agency will confirm  an even smaller crop than predicted in the previous report.

CBOT soybean futures were higher in early activity, providing  underlying support for canola as well. European rapeseed and  Malaysian palm oil futures also posted modest gains overnight.

South American crop prospects kept some caution in the futures  overall. While recent dryness in Brazil and excessive moisture in  Argentina has supported the oilseed markets recently, record large  soybean production is still likely from the region.

Profit-taking at the highs was also expected to limit the upside  potential in canola, as values near upside resistance.

About 1,600 canola contracts had traded as of 8:37 CST.

Milling wheat, durum, and barley futures were all untraded and  unchanged Thursday morning.

Prices in Canadian dollars per metric ton at 8:37 CST:

Commodity futures

Futures Prices as of October 24, 2014

Canola Price Change
January596.803.90
March596.003.40
May596.305.10
Milling Wheat Price Change
December308.00
March316.00
Durum Price Change
December312.00
March316.00
New Barley Price Change
December245.00
March248.00

Prices are in Canadian dollars per metric ton