WINNIPEG – The ICE Futures canola market was at new contract highs Wednesday morning, as bullish technical signals kept speculators on the buy side and prices hit their strongest levels in three years.
Gains in Chicago Board of Trade soybeans provided spillover support for canola. Malaysian palm oil was also up in overnight trade, although CBOT soyoil turned mixed.
Intermonth spreading remained a feature, as traders continue to roll out of the nearby November contract. The front month was posting the largest gains, as the November/January spread moved to even-money.
Ideas that the advances are starting to look overdone put some pressure on the market. Ample supplies in the commercial pipeline also tempered the upside.
About 8,900 canola contracts had traded as of 8:39 CDT.
Prices in Canadian dollars per metric ton at 8:39 CDT:
Price Change
Canola Nov 545.80 up 7.80
Jan 545.70 up 4.00
Mar 549.60 up 3.20
May 547.20 up 1.70
