By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 19 (MarketsFarm) – The ICE Futures canola market was mixed on Thursday, with new contract highs in the front months for the third-straight session and a softer tone in the more deferred positions.
Aggressive commercial demand in the cash market was behind some of the strength in the nearby contracts, according to a broker. That demand saw the market move into an inverse situation, with higher prices for nearby delivery.
Gains in Chicago Board of Trade soybeans and soyoil, amid concerns over the production prospects in South America, were supportive for canola as well. A softer tone in the Canadian dollar also helped keep crush margins at wide levels.
Ideas the market was looking overbought tempered the upside to some extent.
About 20,000 canola contracts traded as of 10:42 CST, with intermonth spreading a feature.
Prices in Canadian dollars per metric tonne at 10:42 CST:
Canola Jan 572.30 up 2.90
Mar 571.70 up 1.80
May 569.70 up 0.50
Jul 565.70 dn 0.50