WINNIPEG, Manitoba--The ICE Futures canola market was stronger on Tuesday, testing contract highs in sympathy with the Chicago Board of Trade soy complex.
Forecasts calling for hot and dry weather in South America accounted for some of the buying in soybeans and soyoil that spilled into canola, as soybean yields in Brazil and Argentina could be hurt by the adverse growing conditions.
Strength in Malaysian palm oil and European rapeseed futures added to the firmer tone, with both of those markets hitting fresh highs of their own.
Bullish technical signals were also supportive. However, ideas that the canola market was looking overpriced at current levels tempered the gains somewhat.
About 18,802 canola contracts traded on Tuesday, which compares with Friday when 8,089 contracts changed hands.
Spreading accounted for 10,326 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola
Mar 1,021.40 up 8.80 May 998.40 up 15.00 Jul 950.00 up 16.60 Nov 785.00 up 13.30
Spread trade prices are in Canadian dollars and the volume represents the number of spreads:
Months Prices Volume Jan/Mar 20.00 over 1 Mar/May 30.50 over to 20.20 over 2,437 Mar/Jul 81.10 over to 68.50 over 47 Mar/Nov 245.60 over to 234.50 over 655 May/Jul 52.90 over to 46.00 over 1,407 May/Nov 215.10 over to 211.60 over 250 Jul/Nov 169.90 over to 160.80 over 352 Nov/Jan 5.80 over to 3.50 over 14
Source: Commodity News Service Canada
Write to Phil Franz-Warkentin at news@marketsfarm.com
(END) Dow Jones Newswires
01-04-22 1532ET