By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 22 (MarketsFarm) – The ICE Futures canola market was mixed at midday Monday, recovering from overnight declines in the front months as a rally in Chicago Board of Trade soyoil provided support.
Malaysian palm oil was also higher in overnight activity, boosted by solid export demand.
Friday’s rally brought the nearby May contract back above the 20-day moving average, which was supportive from a chart standpoint. Tight old crop supplies and the need to ration demand going forward kept the market underpinned as well.
However, ideas that fresh end user demand was backing away at current price levels put some pressure on values. New crop months were lower on intermonth spreading and expectations for increased acres this spring.
About 7,200 canola contracts traded as of 10:39 CDT.
Prices in Canadian dollars per metric tonne at 10:39 CDT:
Canola May 780.70 up 4.50
Jul 729.00 up 1.90
Nov 617.40 dn 2.20
Jan 619.80 dn 1.80