By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 4 (MarketsFarm) – The ICE Futures canola market was stronger Monday morning, taking some direction from Chicago Board of Trade soyoil and Malaysian palm oil.
Palm oil futures climbed to their highest levels in 20 months overnight on the back of strong demand from the biodiesel sector and tightening demand. The strength in palm oil was underpinning other world vegetable oil markets, including canola.
Uncertainty over the size and quality of this year’s Canadian canola crop also remained somewhat supportive.
However, ample supplies in the commercial pipeline and a lack of aggressive end user demand tempered the advances.
The underlying technical signals also remain bearish, making any gains a selling opportunity from a chart standpoint, according to analysts.
About 9,500 canola contracts had traded as of 8:38 CST.
Prices in Canadian dollars per metric ton at 8:38 CST:
Price Change
Canola Jan 459.10 up 0.90
Mar 468.60 up 1.00
May 477.40 up 0.70
Jul 486.20 up 2.00
