WINNIPEG, Sept. 17 (MarketsFarm) – The ICE Futures canola market was stronger at midday Thursday, seeing follow-through buying after Wednesday’s break above psychological chart resistance.
The November contract settled above C$530 per tonne on Sept. 16, marking the first close above that level in more than two years. The move was bullish from a chart standpoint, and speculators continued to put on new long positions on Thursday.
A lack of significant selling pressure on the other side, as sellers appear content to only participate on a scale-up basis, was also supportive.
Malaysian palm oil was up sharply overnight, with Chicago Board of Trade soybeans also testing new two-year highs at midday. However, weakness in CBOT soyoil put some pressure on canola.
Seasonal harvest pressure and ideas canola was looking overbought also weighed on values.
About 20,500 canola contracts traded as of 10:42 CDT.
Prices in Canadian dollars per metric tonne at 10:42 CDT:
Canola Nov 531.70 up 1.50
Jan 538.40 up 1.50
Mar 544.20 up 1.00
May 545.00 up 1.60