ICE Review: Canola Climbs Higher Friday

WINNIPEG, Manitoba--The ICE Futures canola market was stronger on Friday, nearing major chart resistance as the market continued to correct off nearby lows.

The May contract gained C$41.70 per tonne over the week, finishing Friday's session just shy of a gap on the charts between C$615 and C$617 per tonne formed when news of Chinese tariffs on canola oil and meal sparked a selloff earlier in the month.

End user bargain hunting contributed to the gains, as canola remains attractively priced on the global market.

Chicago soyoil, European rapeseed and Malaysian palm oil futures were all stronger.

Canadian Prime Minister Mark Carney spoke with U.S.

President Donald Trump Friday morning, with both leaders describing the call as productive. However, U.S. tariffs and Canadian retaliatory measures are still slated to come into effect next week, with more negotiations promised for after the federal election.

There were 48,008 contracts traded on Friday, which compares with Thursday when 43,171 contracts changed hands.

Spreading accounted for 32,420 of the contracts traded.

Settlement prices in Canadian dollars per metric tonne.

 
           Price      Change 
May       613.40    up 14.00 
Jul       618.30    up 12.90 
Nov       612.20    up 11.50 
Jan       620.60    up 11.80 

Spread trade prices are in Canadian dollars and the volume represents the number of spreads:

 
Months    Prices                            Volume 
May/Jul   4.50 under to 7.50 under           8,357 
May/Nov   1.20 over to 4.00 under            1,162 
May/Jan   7.20 under to 8.90 under               5 
Jul/Nov   7.10 over to 2.90 over             3,894 
Jul/Jan   2.30 under to 5.80 under             383 
Nov/Jan   7.90 under to 9.10 under           2,070 
Jan/Mar   5.10 under to 6.70 under             289 
Mar/May   3.10 under to 3.90 under              49 
May/Jul   2.00 under                             1 
 

Source: Commodity News Service Canada, news@marketsfarm.com