By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 8 (MarketsFarm) – The ICE Futures canola market was stronger at midday Friday, setting fresh contract highs for the fifth-straight session as bullish chart signals and fundamentals remained supportive.
Solid demand from both exporters and domestic crushers, as they work to secure coverage in the face of a tightening supply situation, accounted for much of the continued strength in canola.
Gains in Chicago Board of Trade soybeans provided spillover support as well, although soyoil was holding near unchanged at midday.
However, canola was said to be looking overbought from a chart standpoint, which put some pressure on values. Ongoing strength in the Canadian dollar, which was hovering just below 79 U.S. cents, also tempered the advances.
About 19,500 canola contracts traded as of 10:50 CST.
Prices in Canadian dollars per metric tonne at 10:50 CST:
Price Change
Canola Mar 661.90 up 5.10
May 650.80 up 3.80
Jul 638.30 up 4.50
Nov 538.70 up 4.90
