ICE weekly outlook: Canola firm at midweek

ICE November 2020 canola with 20-, 50- and 100-day moving averages. (Barchart)

MarketsFarm — ICE Futures canola contracts have steadied after slipping slightly following Canada’s Thanksgiving long weekend, with nearby attention on speculations rolling positions out of the front month.

The nearby November contract closed Wednesday at $526.10 per tonne, gaining slightly after incurring losses the day prior.

Market participants adjusting positions ahead of the November contract’s expiration have been a feature in trade activity.

Speculative traders “are getting more aggressive rolling their positions forward,” Keith Ferley of RBC Dominion Securities in Winnipeg said.

Harvest activity is also partially behind some of the pressure on canola prices, as only small amounts of canola are still left on the fields in Western Canada.

Gains in Chicago soyoil have been supportive of canola prices, as continual export demand has given the Chicago soy complex a boost.

The U.S. Department of Agriculture (USDA) on Wednesday morning announced a sale of 264,000 tonnes of soybeans, purchased by China for delivery during the current marketing year.

— Marlo Glass reports for MarketsFarm from Winnipeg.

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