By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 21 (MarketsFarm) – The ICE Futures canola market was stronger Monday morning, hitting fresh contract highs to start the week as bullish technical signals kept speculators adding to their large net long positions.
Concerns over tightening supplies and the resulting need to ration demand going forward added to the strength in canola, with the biggest gains in the nearby contracts.
Early advances in Chicago Board of Trade soybeans and weakness in the Canadian dollar were also supportive. The currency was down by roughly half of a cent relative to its United States counterpart.
However, losses in soyoil put some pressure on values. Overbought price sentiment and scale-up farmer selling also tempered the gains.
About 7,000 canola contracts had traded as of 8:40 CST.
Prices in Canadian dollars per metric ton at 8:40 CST:
Price Change
Canola Jan 629.30 up 5.50
Mar 621.30 up 3.90
May 607.40 up 3.50
Jul 591.00 up 1.70
