WINNIPEG, Sept. 16 (MarketsFarm) – The ICE Futures canola market was up sharply at midday Wednesday, hitting fresh contract highs as speculative fund traders added to their large net long positions.
“The funds are long and continue to add to their long positions,” said a broker on the technical buying behind much of the gains.
A rally in Chicago Board of Trade soybeans and soyoil provided the catalyst for the strength in canola, according to the broker.
Disappointing early yield reports in parts of Western Canada were also said to be supportive, although the broker added that production may still
Light scale-up farmer selling was likely slowing the advances to some extent, although producers were generally thought to be on the sidelines of the market as they focus on the harvest.
About 20,500 canola contracts traded as of 10:41 CDT.
Prices in Canadian dollars per metric tonne at 10:41 CDT:
Canola Nov 526.80 up 5.50
Jan 533.30 up 5.30
Mar 539.60 up 5.60
May 539.20 up 4.20
Futures Prices as of September 16, 2020
Prices are in Canadian dollars per metric ton