By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 26 – (MarketsFarm) – ICE Futures canola contracts were stronger at midday Thursday, as gains in outside markets provided support.
“Crude oil is catching a bid and the vegetable oils are following along,” said an analyst.
Chicago soyoil, European rapeseed, and Malaysian palm oil futures were all stronger with that buying interest spilling into the canola market.
Concerns over Canadian production were also supportive, with persistent seeding delays due to excess moisture in the eastern Prairies and ongoing dryness issues in the west.
The nearby July contract was back above its 20-day moving average after falling below that chart level on Wednesday, which was supportive from a technical standpoint.
About 11,200 canola contracts traded as of 10:40 CDT.
Prices in Canadian dollars per metric tonne at 10:40 CDT:
Canola Jul 1,173.60 up 20.00
Nov 1,071.10 up 17.00
Jan 1,077.10 up 17.00
Mar 1,075.20 up 13.90
