Canola Futures Post Double-Digit Gain: ICE Market Analysis

Canola Futures Post Double-Digit Advance

Intercontinental Exchange canola futures advanced by double digits on Thursday, pushed higher by strong gains in the Chicago soy complex.

Supporting Factors

Additional support came from more modest increases in European rapeseed and Malaysian palm oil. Crude oil was mixed, with West Texas Intermediate slightly higher while Brent crude slipped back.

Planting Delay Concerns

An analyst said concerns about planting delays could also be underpinning canola. Saskatchewan reported that its spring seeding is 52% complete overall as of May 25, advancing 23 points on the week. The province's canola was 38% done compared to 15% a week ago.

Technical Outlook

The July canola contract pushed further above its major moving averages, including trading C$17 above its 20-day average. Canola crush margins continued to expand, with the July position adding about C$8 at C$388 per tonne above the futures.

Market Data

The Canadian dollar was stronger Thursday afternoon, rising to 72.54 U.S. cents. There were 65,684 canola contracts traded on Thursday, compared to 58,627 on Wednesday. Spreading accounted for 36,230 contracts traded.

Prices in Canadian dollars per metric tonne: Jul 767.30 (up 10.60), Nov 778.70 (up 11.00), Jan 786.10 (up 10.60), Mar 791.40 (up 10.40).