ICE Canola Near Contract Highs on Tight Supply

WINNIPEG--The ICE Futures canola market was stronger at midday Wednesday, holding near contract highs as the underlying fundamentals of tight supplies and the need to ration demand remained supportive.

Spillover buying interest from soybeans and soyoil at the Chicago Board of Trade added to the firmer tone in canola. European rapeseed and Malaysian palm oil were also stronger on the day.

While there were some ideas that canola may be looking overpriced at current levels, an analyst pointed out that the strength was warranted given the tight supplies. He added that the technical chart signals were still supportive.

About 9,400 canola contracts traded as of 11:40 a.m. EST.

Prices in Canadian dollars per metric ton:

 
                        Price       Change 
Canola            Mar   1,027.40    up  6.00 
                  May   1,005.30    up  6.90 
                  Jul     956.00    up  6.00 
                  Nov     792.00    up  7.00 
 

Source: Commodity News Service Canada, [e-mail]

(END) Dow Jones Newswires

01-05-22 1221ET