By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 21 (MarketsFarm) – The ICE Futures canola market was stronger at midday Tuesday, seeing a continuation of Monday’s bounce as traders reacted to activity in outside markets.
Chicago soyoil, European rapeseed and Malaysian palm oil futures were all higher, helping underpin the Canadian oilseed. Weather concerns for soybeans in Brazil were thought to be behind some of the strength in world vegetable oil markets.
Chart-based positioning contributed to the gains, Monday’s close above the 50-day moving average in the January contract was constructive from a technical standpoint.
The Canadian dollar was also firmer on the day, tempering the upside to some extent. A softer tone in crude oil was also overhanging the market.
An estimated 22,300 canola contracts traded as of 10:32 CDT.
Prices in Canadian dollars per metric tonne at 10:32 CDT:
Canola Jan 721.70 up 5.00
Mar 725.50 up 5.10
May 729.00 up 4.20
Jul 731.80 up 2.60
