ICE review: Canola posts modest correction

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Glacier FarmMedia — The ICE Futures canola market held onto small gains on Thursday, seeing a modest correction after dropping sharply the previous session.

  • Uncertainty over the tentative ceasefire between the United States and Iran saw crude oil post small gains, although traffic through the Strait of Hormuz remains constricted.
  • Chicago soyoil, European rapeseed and Malaysian palm oil were all higher, contributing to the gains in canola.
  • However, canola ran into resistance, as “the way up isn’t ever as fast as the way down,” said an analyst. 
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  • Updated supply/demand estimates from the United U.S. Department of Agriculture were relatively neutral for soybeans, as the agency left its U.S. ending stocks estimate unchanged from March.
  • There were 71,971 contracts traded on Thursday, which compares with Wednesday when 99,898 contracts changed hands. Spreading accounted for 48,680 of the contracts traded.

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