By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 12 (MarketsFarm) – The ICE Futures canola market was posting solid gains at midday Wednesday, nearing major chart resistance as traders adjusted positions ahead of the latest monthly supply/demand estimates from the United States Department of Agriculture.
The most-active November contract was testing the psychological C$800 per tonne level, with the next upside target at C$820.
General expectations ahead of the USDA report are for reductions in both soybean production and ending stocks, but the extent of the revisions remains to be seen.
Strength in the Canadian dollar tempered the advances in canola, with the currency up over a third of a cent relative to its U.S. counterpart.
About 23,700 canola contracts traded as of 10:20 CDT.
Prices in Canadian dollars per metric tonne at 10:20 CDT:
Canola Nov 800.60 up 13.50
Jan 800.30 up 10.30
Mar 794.40 up 7.00
May 785.50 up 4.10
