Canola futures climbed higher during the week ended March 11, finding spillover support from advances in crude oil due to the escalating conflict in Iran and surrounding countries.
Canola is poised for more gains as the trade awaits the Trump administration’s decision on the latest biodiesel mandate, said Jamie Wilton, broker with RJ O’Brien in Winnipeg.
ICE Futures canola contracts were underpinned by a rally in Chicago soyoil during the week ended Feb. 18, but the Canadian oilseed ran into upside chart resistance that tempered gains.
ICE canola futures have trended steadily higher for the past month, with more upside possible from a chart standpoint as market participants continue to account for easing tariffs from China.
In order to get Canadian farmers to plant at least the same amount of canola this spring as they did last spring, they are likely going to need a premium, said Jerry Klassen, analyst with Resilient Capital in Winnipeg.
Canola futures were trending higher to start the New Year, with the nearby technical signals showing more room to the upside. However, continued strength will require additional outside support.
When canola trading begins returning to normal come Jan. 5, the oilseed’s futures are likely to fall back, said Tony Tryhuk, trader with RBC Dominion securities in Winnipeg.