By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 5 – (MarketsFarm) – ICE Futures canola contracts were mixed at midday Tuesday, with losses in the front months and gains in the more deferred positions as the old/new crop spreads narrowed.
Gains in outside markets, including Chicago Board of Trade soyoil and European rapeseed, provided some spillover support for canola. The tight old crop supply situation and the need to encourage acres this spring also underpinned the futures.
However, with demand shifting from the old to the new crop there was room for some profit-taking in the front months. The May and July contracts climbed well above their 20-day moving averages on Monday, but were holding above that chart point at midday Tuesday despite the correction.
About 11,000 canola contracts traded as of 10:44 CDT.
Prices in Canadian dollars per metric tonne at 10:44 CDT:
Price Change
Canola May 1,156.20 dn 13.80
Jul 1,128.90 dn 6.00
Nov 1,005.70 up 3.40
Jan 1,005.60 up 3.70
