By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 20 (MarketsFarm) – The ICE Futures canola market was stronger at midday Friday, but off its earlier highs as values ran into resistance and profit-taking came forward ahead of the weekend.
Solid commercial demand remained a supportive feature, as end users bid up the front months in order to secure supplies. The nearby January contract hit a session high of C$579.30 per tonne, before backing away to trade around the C$575 per tonne area.
Gains in Chicago Board of Trade soybeans also provided some spillover support, especially as canola has lagged the soy complex to the upside recently.
However, soyoil was weaker at midday, putting some pressure on canola.
Overbought price sentiment and a steady tone in the Canadian dollar also tempered the upside.
About 10,600 canola contracts traded as of 10:46 CST, with intermonth spreading a feature.
Prices in Canadian dollars per metric tonne at 10:46 CST:
Canola Jan 575.20 up 2.90
Mar 572.50 up 1.30
May 569.20 up 0.50
Jul 565.00 up 0.10