By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 5 (MarketsFarm) – The ICE Futures canola market was stronger at midday Wednesday, holding near contract highs as the underlying fundamentals of tight supplies and the need to ration demand remained supportive.
Spillover buying interest from soybeans and soyoil at the Chicago Board of Trade added to the firmer tone in canola, with European rapeseed and Malaysian palm oil also stronger on the day.
While there were some ideas that canola may be looking overpriced at current levels, an analyst pointed out that the strength was warranted given the tight supplies. He added that the technical chart signals were also still supportive.
About 9,400 canola contracts traded as of 10:40 CST.
Prices in Canadian dollars per metric tonne at 10:40 CST:
Price Change
Canola Mar 1,027.40 up 6.00
May 1,005.30 up 6.90
Jul 956.00 up 6.00
Nov 792.00 up 7.00
