By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 9 (MarketsFarm) – The ICE Futures canola market was posting solid gains at midday Friday, taking some direction from the Chicago Board of Trade soy complex as traders adjusted positions ahead of the latest supply/demand estimates from the United States Department of Agriculture.
Chicago Board of Trade soyoil was up by roughly one cent per pound, while soybeans posted double-digit gains. Expectations that the USDA will lower its soybean production estimate in today’s report while also raising exports were supportive. Overnight gains in Malaysian palm oil futures also underpinned the North American oilseed markets, including canola.
A slowdown in farmer selling, as harvest operations wrap up across the Prairies, added to the firmer tone in canola.
However, chart resistance was holding to the upside, with the November contract hard pressed to move above the C$530 per tonne level. Strength in the Canadian dollar, which was trading back above 76 U.S. cents, also kept the advances in check.
About 14,600 canola contracts traded as of 10:06 CDT.
Prices in Canadian dollars per metric tonne at 10:06 CDT:
Canola Nov 527.40 up 4.60
Jan 534.40 up 5.00
Mar 540.60 up 5.00
May 543.00 up 4.80
Commodity Future Prices
Prices are in Canadian dollars per metric ton