WINNIPEG, Manitoba--The ICE Futures canola market was mostly higher at Tuesday's close, as speculative short covering and end-user bargain hunting provided support. However, a downturn in the Chicago soy complex tempered the upside.
* March canola settled right at its 20-day moving average, after climbing well above that level in early trade.
* Fund traders were thought to be covering some of their large net short position in canola, with exporter interest also believed to be coming forward amid ideas canola was starting to look cheap.
* However, the absence of Chinese buying remained a bearish influence.
* European rapeseed jumped higher for the second session in a row, providing spillover support.
* Chicago soybeans had moved higher in early activity as well but turned lower in sympathy with soyoil as the day progressed.
* Large supplies and expectations for burdensome carryout supplies tempered the upside. The March contract also ran into resistance around C$620 per tonne.
* There were 51,771 contracts traded on Tuesday, which compares with Monday when 38,105 contracts changed hands.
Spreading accounted for 25,204 of the contracts traded.
Settlement prices in Canadian dollars per metric tonne.
Price Change
Mar 613.90 up 3.10
May 623.90 up 2.80
Jul 631.60 up 2.70
Nov 629.60 dn 1.50 Spread trade prices are in Canadian dollars and the volume represents the number of spreads:
Months Prices Volume Mar/May 9.60 under to 10.40 under 6,106 Mar/Jul 16.70 under to 18.10 under 633 Mar/Nov 13.70 under to 19.70 under 354 May/Jul 6.90 under to 7.90 under 3,016 May/Nov 4.80 under to 5.70 under 1 May/Jan 11.70 under to 15.30 under 3 Jul/Nov 4.00 over to 2.00 under 2,468 Jul/Jan 4.00 under to 8.40 under 3 Jul/May 7.60 under to 9.40 under 1 Nov/Jan 5.70 under to 6.60 under 15 Jan/Mar 3.10 under 1 Mar/May 0.50 under to 1.50 under 1
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
01-06-26 1532ET
