By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 2 (MarketsFarm) – The ICE Futures canola market was posting solid gains at midday Thursday, climbing off nearby lows amid ideas recent losses were overdone.
Speculative funds holding a record large net short position were behind the rally in canola, as they covered some of those bearish bets and booked profits, according to a trader. However, he added that canola still had more room to the upside to break the months-long downtrend.
The rally in canola was largely independent of outside markets, with Chicago soyoil narrowly mixed and relatively small gains in soybeans and European rapeseed. As a result, the trader cautioned that canola futures could easily retreat from their highs and go back to moving lower.
An estimated 24,200 canola contracts traded as of 10:53 CDT.
Prices in Canadian dollars per metric tonne at 10:53 CDT:
Canola Jan 694.40 up 21.10
Mar 703.10 up 20.90
May 708.90 up 20.30
Jul 715.40 up 20.20
