Glacier FarmMedia — 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.
Solid monthly crush data and optimism over U.S. biofuel policies accounted for some of the buying interest in soyoil, with some of that strength spilling into canola. While the U.S. soy complex has also benefited from talk of increased sales to China, the canola market lacked any supportive fundamental news of its own.
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The May contract held just below resistance at C$680 per tonne for most of the week but managed to break higher on Feb. 18.
Speculative fund traders have been exiting their net short position in canola since the start of 2026 and were holding relatively equal long and short positions in the latest Commitments of Traders data as of Feb. 10. Analyst Mike Jubinville expected speculators were no longer bearish the canola market and would be buyers on any breaks lower.
Buyers and sellers appeared balanced at the C$680 per tonne level in the May contract for most of the week, said Jubinville. However, he expected values would eventually go up if soyoil keeps moving higher.
While C$700 per tonne could provide some nearby psychological resistance, Jubinville placed the next upside target on a weekly chart at the June high of C$740 per tonne.
May canola settled at C$682.70 per tonne on Feb. 18, it’s highest level in six months. The May soyoil futures in Chicago hit contract highs, settling at 59.08 U.S. cents per pound.
