WINNIPEG, Manitoba--ICE Futures canola contracts held rangebound during the week ended Oct. 13, climbing to their strongest levels in two months at one point before running into resistance and retreating to trade well off those highs.
"We're still stuck in a trading range," said Keith Ferley, of RBC Dominion Securities in Winnipeg.
Activity in outside markets, including Malaysian palm oil and United States soybean futures, accounted for some of the movement in the Canadian oilseed within that range.
On the one hand, palm oil futures climbed to record highs during the week which provided some support.
"Palm oil is the leader and is keeping a bid underneath canola," said Ferley.
However, bearish yield and stocks data from the United States Department of Agriculture weighed heavily on Chicago Board of Trade soybeans during the week, with some of that selling pressure spilling into the canola market.
Ferley said canola was likely lagging soybeans to the downside though, as the U.S. soybean harvest is only half complete. Meanwhile, the canola harvest is already done, limiting the amount of seasonal harvest pressure in the Canadian oilseed.
From a chart perspective, January canola hit a session high of C$924.50 per ton on Oct. 8 and a low of C$885.70 on Oct. 12, before settling at C$893.90 on Oct. 13. Longer-term support comes in around C$850 per ton.
Source: Commodity News Service Canada, firstname.lastname@example.org
(END) Dow Jones Newswires