ICE Canola Higher on Technicals, Funds Covering Short Positions

WINNIPEG, Manitoba--The ICE Futures canola market was sharply higher, taking back most of its losses from late last week as fund traders were said to be back covering their large short positions.

Bullish chart signals added to the strength, with canola holding above some key moving averages on Monday.

However, resistance at last week's three-month highs was holding with values also starting to look overbought by some technical indicators.

Gains in outside markets provided underlying support. Chicago soyoil, European rapeseed and Malaysian palm oil were all up.

Statistics Canada reported that 897,790 metric tons of canola were crushed in the country in February, which was down by 4% from January but up by 10.5% from the same month a year ago.

An estimated 23,500 canola contracts traded as of 11:53 a.m. EDT.

Prices in Canadian dollars per metric ton:

Canola

 
   Contracts  Price   Change 
   May        645.10  up 10.60 
   Jul        653.90  up 9.80 
   Nov        660.30  up 8.10 
   Jan        667.70  up 7.80 
 

Source: MarketsFarm, [e-mail]

(END) Dow Jones Newswires

03-25-24 1237ET