By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 6 (MarketsFarm) – The ICE Futures canola market was stronger at midday Wednesday, hitting fresh contract highs once again as speculators continued to add to their large net long positions.
The most active March contract was trading well above the former resistance level of C$650 per tonne, which should now provide support if the gains hold by the close.
Advances in Chicago Board of Trade soybeans and soyoil accounted for some of the spillover buying interest in canola, according to an analyst. Concerns over tightening canola supplies were also supportive, as the market works to ration demand going forward, he added.
Scale-up farmer hedges, as solid cash prices encourage some sales, tempered the upside. Recent strength in the Canadian dollar, which was trading just below 79 United States cents at midday, also put some pressure on values.
About 11,500 canola contracts traded as of 10:40 CST.
Prices in Canadian dollars per metric tonne at 10:40 CST:
Canola Mar 652.70 up 6.80
May 644.40 up 7.10
Jul 631.70 up 5.20
Nov 547.00 up 2.00