By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 26 (MarketsFarm) – The ICE Futures canola market was stronger at midday Wednesday, moving back to the upper edge of its sideways trading range as gains in Chicago soyoil provided spillover support.
European rapeseed and Malaysian palm oil futures were also up on the day, providing additional support.
“Canola is keeping in line with the soy market, once you factor in the Canadian dollar,” said a broker. The currency was slightly firmer at midday but had weakened earlier in the session in response to the Bank of Canada’s smaller-than-expected 50-point interest rate hike.
Crush margins remain historically wide, which should be keeping end users active on the buy side. However, chart resistance continues to hold to the upside from a technical standpoint.
About 13,400 canola contracts traded as of 10:59 CDT.
Prices in Canadian dollars per metric tonne at 10:59 CDT:
Canola Nov 912.00 up 15.20
Jan 875.30 up 8.50
Mar 881.00 up 8.40
May 885.70 up 8.20
