WINNIPEG, Manitoba--The ICE Futures canola market was stronger on Tuesday, hitting its highest levels in two-and-a-half months.
Chart-based positioning was a feature, as values moved above some key moving averages and speculators covered some of their record large short positions in canola.
Talk of increased Chinese demand was also supportive, although other end users were thought to be keeping to the sidelines.
Chicago soyoil, European rapeseed and Malaysian palm oil futures were all stronger on Tuesday, providing spillover support to the Canadian oilseed.
However, some technical signals were starting to look overbought, which could temper the upside going forward, according to an analyst.
There were an estimated 44,542 contracts traded on Tuesday, which compares with Monday when 55,174 contracts traded.
Spreading accounted for 19,508 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Canola
Price Change
May 627.70 up 12.00
Jul 636.00 up 12.70
Nov 641.90 up 12.90
Jan 649.40 up 13.00
Spread trade prices are in Canadian dollars and the volume represents the number of spreads:
Months Prices Volume May/Jul 7.20 under to 8.40 under 5,653 May/Nov 13.00 under to 14.20 under 45 May/Mar 24.90 under to 26.40 under 12 Jul/Nov 5.30 under to 6.30 under 3,446 Nov/Jan 7.00 under to 7.50 under 544 Jan/Mar 3.20 under to 4.80 under 50 Mar/May 0.10 under 4
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
03-12-24 1544ET
