Intercontinental Exchange (ICE) canola futures continued to push higher at midday Wednesday, getting support from increases in other edible oils, according to an analyst.
He noted that Chicago soyoil shot up sharply so far today, with European rapeseed still on the rise along with gains in Malaysian palm oil. Canola was also being supported by tight supplies and this year's production coming in far below earlier expectations.
"Canola has broken out of its sideways trend that it's been in for a while," the analyst commented. "Technically on the charts, the actual buying activity and trading activity is saying it's going higher," he added, noting that canola could again exceed C$1,000 per tonne.
The Canadian dollar remained on the upswing with the loonie at 81.16 U.S. cents compared to Tuesday's close of 80.93. Despite the recent gains the dollar has made, the analyst said such have played a small factor in canola prices.
ICE announced yesterday that it is raising the daily price limit for canola from C$50/tonne to C$60 effective Nov. 1.
Approximately 20,000 canola contracts were traded as of 11:33 ET.
Prices in Canadian dollars per metric tonne at 11:33 ET:
Nov 944.00 up 6.20
Jan 940.20 up 8.00
Mar 924.80 up 7.00
May 897.80 up 5.10
(END) Dow Jones Newswires