By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was posting solid gains Thursday morning, seeing a correction after dropping for the previous six sessions.
The January contract hit a fresh six-month low of C$645.80 per tonne in overnight activity before uncovering support to climb C$20 per tonne off that level.
A rally in Chicago soyoil provided spillover support, with European rapeseed and Malaysian palm oil also moving higher.
End-user bargain hunting and a lack of significant farmer selling likely contributed to the gains.
However, Statistics Canada’s upward revision to the country’s canola production on Monday continued to overhang the market. The government agency pegged the crop at 18.3 million tonnes, which was up by nearly a million tonnes from the September estimate and above average trade guesses, but still down slightly on the year.
About 12,700 canola contracts had traded as of 8:44 CST.
Prices in Canadian dollars per metric ton at 8:44 CST:
Canola Jan 664.60 up 14.70
Mar 673.00 up 13.70
May 681.10 up 13.40
Jul 687.90 up 13.40
