By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 21 – (MarketsFarm) – ICE Futures canola contracts were stronger at midday Thursday, setting fresh contract highs in the new crop months.
Bullish chart signals accounted for much of the continued strength in canola, with speculators continuing to add to their large net-long positions.
“There’s a lot of money in the market, and they don’t need any fundamentals to keep buying,” said an analyst. He thought canola futures were looking overbought compared to other oilseeds.
Chicago Board of Trade soyoil futures were slightly firmer at midday, while soybeans were lower. The Canadian dollar was slightly weaker.
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Statistics Canada releases its first survey-based acreage estimates for the upcoming growing season on April 26. While strong prices should be encouraging an increase in seeded canola area from the 22.5 million acres planted in 2021, many market participants still anticipate a slight decline in canola area due to competition from other crops and rising input costs.
About 9,000 canola contracts traded as of 10:54 CDT.
Prices in Canadian dollars per metric tonne at 10:54 CDT:
Price Change
Canola May 1,165.50 up 2.90
Jul 1,147.90 up 2.90
Nov 1,054.30 up 5.60
Jan 1,055.70 up 5.30
