By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 17 (MarketsFarm) – The ICE Futures canola market was stronger at midday Monday, as spillover from outside markets and speculative positioning provided support.
Managed money fund traders reduced their net short position slightly in the latest Commitment of Traders data but were still holding a large net short of more than 47,000 contracts as of April 11. With May deliveries only a few weeks away, speculators will be actively looking to roll their remaining open positions out of the front month which could be supportive to prices, according to an analyst.
Chicago soyoil, European rapeseed and Malaysian palm oil futures were all higher on the day, providing spillover support for canola.
A softer tone in the Canadian dollar also underpinned the futures, although crush margins have moved off their recent highs.
About 12,500 canola contracts traded as of 10:30 CDT.
Prices in Canadian dollars per metric tonne at 10:30 CDT:
Canola May 771.00 up 7.90
Jul 744.30 up 8.00
Nov 702.80 up 8.90
Jan 705.70 up 9.10
