By Phil Franz-Warkentin
Glacier FarmMedia | MarketsFarm — ICE Futures canola contracts were higher at midday Tuesday, with the largest gains in the old crop contracts as the market works to ration demand.
Canola was trading at the upper end of its year-long range on a weekly chart, with major resistance seen at C$680 per tonne in the most-active July contract.
Strength in Chicago soyoil provided spillover support, with European rapeseed also higher on the day. However, losses in soybeans and a mixed tone in Malaysian palm oil put some pressure on values.
An analyst cautioned that declining open interest in the canola market as prices rise could be a sign that end users are not as concerned with tightening supplies as the market action implies, with available stocks possibly understated in the official data.
The Canadian dollar was weaker at midday, providing additional support.
An estimated 30,500 canola contracts traded as of 10:37 CDT.
Prices in Canadian dollars per metric tonne at 10:37 CDT:
Canola May 667.60 up 6.00
Jul 673.60 up 4.90
Nov 648.80 up 0.50
Jan 655.80 up 1.40
