By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 16 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were slightly higher on Wednesday morning with January hitting new highs.
The next resistance level is believed to be in the C$620 per tonne range.
Although there were gains in soybeans and soymeal at the Chicago Board of Trade, soyoil was virtually unchanged and thus provided little direction for canola. There was support from higher Malaysian palm oil values, while European rapeseed was mixed.
As the canola market continues to be inversed, there remains strong demand for the Canadian oilseed. There are concerns that demand has been outstripping supplies and price rationing is leading to increases in canola.
The Canadian dollar is slightly lower and supportive of canola values. The loonie was at 78.43 U.S. cents, compared to Tuesday’s close of 78.60.
About 6,900 canola contracts had traded as of 8:37 CST.
Prices in Canadian dollars per metric tonne at 8:37 CST:
Price Change
Canola Jan 603.20 up 1.40
Mar 595.40 up 1.90
May 588.10 up 1.10
Jul 578.10 up 0.60
