ICE Canola Climbing Higher Thursday

WINNIPEG, Manitoba--The ICE Futures canola market was posting solid gains at midday Thursday, climbing off nearby lows amid ideas recent losses were overdone.

Speculative funds holding a record large net short position were behind the rally in canola, as they covered some of those bearish bets and booked profits, according to a trader. However, he added that canola still had more room to the upside to break the months-long downtrend.

The rally in canola was largely independent of outside markets, with Chicago soyoil narrowly mixed and relatively small gains in soybeans and European rapeseed. As a result, the trader cautioned that canola futures could easily retreat from their highs and go back to moving lower.

An estimated 24,200 canola contracts traded as of 11:53 EDT.

Prices in Canadian dollars per metric tonne at 11:53 EDT:

 
Canola 
        Price   Change 
 Jan    694.40  up 21.10 
 Mar    703.10  up 20.90 
 May    708.90  up 20.30 
 Jul    715.40  up 20.20 
 

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

(END) Dow Jones Newswires

11-02-23 1226ET