WINNIPEG--Nearby ICE Futures canola contracts climbed to fresh highs during the week ended Nov. 24, while the deferred months moved lower.
The new crop November 2022 contract had overshot to the upside and was due for a correction, said Keith Ferley, of RBC Dominion Securities in Winnipeg. He added that any weakness would likely be met by commercial buying.
"New crop canola was way overvalued, and is attracting some selling," added Ken Ball, of PI Financial in Winnipeg.
As far as the more actively traded old crop contracts are concerned, both traders said the underlying fundamentals remain strong. However, the tight supply situation has been priced into the futures for some time and canola may be in need of fresh news as it looks overvalued compared with other oilseeds.
"Things have been choppy and erratic the past few weeks," said Mr. Ball, adding that "the oilseeds have shifted into neutral."
With attention turning to South American production, any weather issues with the soybean crop there could dictate some price movement in canola, Mr. Ball said.
Movement in the energy markets will also be followed closely, said Mr. Ferley of RBC Dominion Securities.
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
11-24-21 1657ET
