ICE Canola Rally Continues in Midday Trading

WINNIPEG, Manitoba--The ICE Futures canola market was stronger at midday Tuesday, seeing a continuation of its recent rally as gains in outside markets provided support.

Chart-based positioning was a feature, as values moved above some key moving averages and speculators holding record large short positions in canola were thought to be covering some of those bearish bets. However, some chart signals were starting to look overbought, which could temper the upside, according to an analyst.

Some of the recent strength in the canola market was thought to be tied to increased Chinese demand, although other export destinations were reportedly keeping to the sidelines for the time being.

Chicago soyoil, European rapeseed and Malaysian palm oil futures were all stronger Tuesday.

An estimated 23,900 canola contracts traded as of 11:39 a.m. EDT.

Prices in Canadian dollars per metric tonne at 11:39 a.m. EDT:

 
                  Price     Change 
Canola       May  624.80  up  9.10 
             Jul  632.50  up  9.20 
             Nov  638.50  up  9.50 
             Jan  647.00  up 10.60 
 
 

Source: Commodity News Service Canada, [e-mail]

(END) Dow Jones Newswires

03-12-24 1213ET