ICE Canola Testing Resistance Ahead of USDA Report

WINNIPEG, Manitoba--The ICE Futures canola market was posting solid gains at midday Wednesday, nearing major chart resistance as traders adjusted positions ahead of the latest monthly supply and demand estimates from the U.S. Department of Agriculture.

The most-active November contract was testing the psychological C$800 per ton level, with the next upside target at C$820.

General expectations ahead of the USDA report are for reductions in both soybean production and ending stocks, but the extent of the revisions remains to be seen.

Strength in the Canadian dollar tempered the advances in canola, with the currency up over a third of a cent relative to its U.S. counterpart.

About 23,700 canola contracts traded as of 11:20 a.m. ET.

Prices in Canadian dollars per metric tonne at 11:20 a.m. ET:

   Canola     Price     Change 
 
      Nov     800.60    up 13.50 
      Jan     800.30    up 10.30 
      Mar     794.40    up 7.00 
      May     785.50    up 4.10 

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

(END) Dow Jones Newswires

07-12-23 1210ET