WINNIPEG, Manitoba--The ICE Futures canola market posted gains for the fifth-straight session on Tuesday, hitting its strongest levels of 2024.
Speculative short covering was a feature, as bullish chart signals remained pointed higher, according to participants. The November contract settled above its 200-day moving average for the first time in five months, while the nearby July contract neared major resistance at C$670 per ton.
Gains in Chicago soyoil and Malaysian palm oil provided additional spillover support. However, soybeans were mixed and European rapeseed was weaker on the day.
Canadian canola stocks as of March 31, 2024, came in at 8.3 million tons, which was up over a million tons from the same time a year ago, but in line with trade expectations.
Rains in Western Canada may cause some seeding delays but will be beneficial for crops in the long run, bringing much needed moisture to dry regions of the Prairies.
There were an estimated 73,055 contracts traded on Tuesday, which compares with Monday when 76,598 contracts traded.
Spreading accounted for 33,634 of the contracts traded.
Settlement prices are in Canadian dollars per metric ton.
Canola
Price Change Jul 667.10 up 6.20 Nov 681.40 up 6.00 Jan 686.70 up 4.90 Mar 689.50 up 4.80
Spread trade prices are in Canadian dollars and the volume represents the number of spreads:
MonthsPricesVolume
Jul/Nov 12.70 under to 15.00 under 13,900 Jul/Jan 18.10 under to 21.20 under 31 Nov/Jan 4.70 under to 6.80 under 2,619 Nov/Nov 40.00 over 10 Jan/Mar 2.20 under to 3.20 under 224 Mar/May 2.40 over to 2.00 over 22 May/Jul 5.00 over to 4.70 over 11
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
05-07-24 1551ET