ICE Canola Higher, Leaves C$600 Resistance Behind

WINNIPEG, Manitoba--Intercontinental Exchange canola futures continued upward as the November canola contract pushed further above its former resistance level of 600 Canadian dollars per metric ton.

A trader said Wednesday the markets are essentially ignoring two important factors, one being the strike by grain workers at the Port of Vancouver that started on Tuesday. He suggested the federal government is unlikely to allow the labor dispute to go on for any significant period of time. The other factor is China's allegations of canola dumping by Canada.

Short covering helped fuel the increases in canola, he said, but farmer selling tempered the gains.

The November contract surpassed its 20- and 50-day moving averages, which the trader said is supportive.

Gains in Chicago soybeans and soyoil, along with those in European rapeseed and Malaysian palm oil further underpinned canola, while a dip in Chicago soymeal limited further increases. Modest declines in crude oil attempted to apply pressure on the vegetable oils.

Statistics Canada issued its crush and grain deliveries reports showing the August canola crush at 850,529 tons, up 2.5% from a year ago. Canola deliveries of 1.31 million tons in August climbed 34.7% from August 2023.

The Canadian dollar was unchanged at 74.27 U.S. cents compared to Tuesday's close of 74.25.

Approximately 42,100 canola contracts traded as of 11:48 a.m. EDT.

Prices in Canadian dollars per metric ton:

Contract Price Change

   Nov      606.70 up 3.10 
   Jan      618.80 up 2.70 
   Mar      629.10 up 1.30 
   May      636.50 up 0.50 
 

Source: MarketsFarm, news@marketsfarm.com

(END) Dow Jones Newswires

September 25, 2024 13:41 ET (17:41 GMT)

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