ICE Review : More Gains for Canola

WINNIPEG, Manitoba--Intercontinental Exchange canola futures closed higher for a second consecutive session on Tuesday.

Support came from an upswing in the Chicago soy complex, especially with soyoil climbing two-thirds of a cent per pound.

An analyst said increases in canola need soyoil to remain above the 50-cent/lb. level. It closed above 51 cents on Tuesday with spillover going into canola.

The analyst also said for canola to sustain an upswing the November contract needs to exceed its 20-day moving average.

Tuesday's activity narrowed that gap to C$4.65 per tonne from about C$6.

Additional support for canola came from increases in MATIF rapeseed and Malaysian palm oil. Crude oil was narrowly mixed, providing little direction to the vegetable oils.

The Canadian dollar was virtually unchanged on Tuesday afternoon with the loonie at 71.68 U.S. cents.

There were 38,733 contracts traded on Tuesday, compared to 39,060 on Monday. Spreading accounted for 25,220 contracts traded.

Prices are in Canadian dollars per metric tonne:

 
           Price      Change 
Nov       615.00     up 7.50 
Jan       628.10     up 7.70 
Mar       639.30     up 7.30 
May       649.30     up 6.80 

Spread trade prices are in Canadian dollars and the volume represents the number of spreads:

 
Months    Prices                            Volume 
Nov/Jan   12.80 under to 13.20 under         7,538 
Nov/Mar   24.10 under to 24.60 under           810 
Nov/May   34.10 under to 34.60 under            48 
Nov/Jul   42.50 under to 43.50 under            84 
Jan/Mar   11.10 under to 11.70 under         2,207 
Jan/Jul   29.40 under to 30.10 under             7 
Mar/May   10.00 under to 10.60 under           888 
Mar/Jul   18.20 under to 19.20 under             1 
Mar/Nov   21.40 under to 22.80 under             3 
May/Jul   8.20 under to 8.80 under             541 
Jul/Nov   2.50 under to 4.80 under             483 
 

Source: Commodity News Service Canada, [e-mail]

(END) Dow Jones Newswires

10-07-25 1520ET