By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was holding onto small gains at midday Tuesday, as chart-based positioning had speculators covering some of their short positions.
The March contract was trading above its 20-day moving average, bringing in some additional buying interest.
Malaysian palm oil hit fresh two-month highs in overnight activity, while gains in European rapeseed were also supportive for the Canadian oilseed. Chicago soyoil was holding closer to unchanged, backing away from earlier advances.
Forecasts calling for hot and dry weather in Argentina provided some support to the oilseed markets, according to a trader who noted that reports expanding biodiesel capacity in the United States were also underpinning values.
An estimated 24,000 canola contracts traded as of 10:44 CST.
Prices in Canadian dollars per metric tonne at 10:44 CST:
Canola Mar 636.80 up 0.50
May 642.90 up 1.70
Jul 647.10 up 2.00
Nov 644.60 up 2.90
