By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 7 – (MarketsFarm) – ICE Futures canola contracts were stronger at midday Thursday, seeing a correction after hitting five-month lows earlier in the week.
Gains in outside markets, including Chicago soyoil, Malaysian palm oil, and European rapeseed futures contributed to the gains in canola.
Speculators had been heavy sellers during the downturn, bailing out of large long positions in the grains and oilseeds. With most of that selling pressure now flushed out of the market, attention should be returning to North American weather conditions, although an analyst also cautioned that Thursday’s move higher could be a ‘dead cat bounce.’
The Canadian dollar was firmer at midday, finding some support from advances in crude oil.
About 12,000 canola contracts traded as of 10:46 CDT.
Prices in Canadian dollars per metric tonne at 10:46 CDT:
Canola Nov 856.40 up 31.10
Jan 863.40 up 30.50
Mar 868.20 up 27.70
May 873.70 up 26.60
