ICE Canola Futures Climb Amid Canadian Thanksgiving Weekend

Canola futures on the Intercontinental Exchange are making small gains, while Chicago soyoil, European rapeseed, and Malaysian palm oil are lower. The Canadian dollar is down, giving support to canola. Harvest operations in the Prairies are nearing their end due to high temperatures. Nearly 24,500 contracts were traded. Prices are up for Nov, Jan, Mar, and May contracts.

Canola futures on the Intercontinental Exchange (ICE) closed higher for the second consecutive session on Tuesday, buoyed by support from an upswing in the Chicago soy complex, particularly with soyoil climbing two-thirds of a cent per pound, according to a MarketScreener report. The analyst noted that increases in canola require soyoil to remain above the 50-cent/lb. level. On Tuesday, soyoil closed above 51 cents, with spillover effects contributing to canola's gains.

To sustain the upward trend, the November canola contract needs to exceed its 20-day moving average. Tuesday's activity narrowed the gap between the contract prices to C$4.65 per tonne from around C$6. Additional support for canola came from increases in MATIF rapeseed and Malaysian palm oil. Crude oil was narrowly mixed, providing little directional influence on vegetable oils.

The Canadian dollar remained virtually unchanged at 71.68 U.S. cents, offering support to canola. Harvest operations in the Prairies are nearing their end due to high temperatures, which could impact future supply dynamics. A total of 38,733 contracts were traded on Tuesday, compared to 39,060 on Monday. Spreading accounted for 25,220 contracts traded.

Prices for various canola contracts showed gains: Nov 615.00 up 7.50, Jan 628.10 up 7.70, Mar 639.30 up 7.30, and May 649.30 up 6.80. Spread trade prices also reflected upward movement, with notable increases in the Nov/Jan spread, Nov/Mar spread, and Nov/May spread.