MarketsFarm –– ICE Futures canola contracts held within a narrow range during the week ended Wednesday, lacking any clear direction with the rolling of positions out of the nearby November contract ahead of its expiry behind much of the trade volumes.
“We’re stuck a little rangebound here,” a Winnipeg-based trader said of the sideways activity, noting the expiry of November options on Friday (Oct. 21) could lead to some more “jostling of positions” over the next few days.
Beyond month-end positioning, activity in the Chicago soy complex and other outside markets will likely set the tone for the canola market, the trader said.
With the canola harvest nearly wrapped up across the Prairies, he noted, farmers were holding off on sales, which was providing some support. Historically wide crush margins were another bullish influence.
From a chart standpoint, the January contract bounced off support at the 20-day moving average around $860 per tonne and climbed higher to test the 100-day average to the upside around $875 per tonne.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
