By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 14 (MarketsFarm) – The ICE Futures canola market was stronger at midday Monday, hitting fresh two-year highs as bullish chart signals kept speculators on the buy side of the market.
Gains in Chicago Board of Trade soybeans and soyoil provided spillover support for canola, with the soy market also testing upper resistance.
Statistics Canada released updated production estimates Monday morning, pegging the 2020/21 canola crop at 19.393 million tonnes. That was down only slightly from the August estimate of 19.403 million tonnes and compares with the year-ago level of 19.447 million.
Relatively favourable harvest weather across Western Canada tempered the upside, according to participants. Overbought price sentiment also put some pressure on values.
About 15,000 canola contracts traded as of 10:24 CDT.
Prices in Canadian dollars per metric tonne at 10:24 CDT:
Canola Nov 519.50 up 2.10
Jan 526.60 up 1.80
Mar 532.50 up 1.90
May 533.10 up 1.80