By Phil Franz-Warkentin
Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was trading to both sides of unchanged early Tuesday, consolidating after dropping on Monday.
Gains in outside markets provided spillover support, with Chicago soyoil, European rapeseed and Malaysian palm oil firmer. Many Asian markets will be closed for the Lunar New Year over the next few days, limiting some activity.
The March canola contract fell below its 200-day moving average on Monday, which was bearish from a technical standpoint. However, other technical support levels were still holding to the downside.
Tightening supply projections and the need to ration demand also remained supportive for canola from a fundamental standpoint.
About 11,500 canola contracts had traded as of 8:45 CST.
Prices in Canadian dollars per metric ton at 8:45 CST:
Canola Mar 630.80 up 0.10
May 639.00 dn 0.80
Jul 644.90 dn 0.90
Nov 635.00 up 2.20
