MarketsFarm — ICE Futures canola contracts moved higher during the week ended Wednesday, but ran into some resistance to the upside as values held rangebound overall.
“Technicals, short-covering, fund buying and a lack of selling,” were all providing support during the week along with spillover from advances in Chicago soyoil, according to Jamie Wilton of RJ O’Brien in Winnipeg.
The most-active May contract gained more than $20 per tonne over the course of the week, hitting a session high of $835 per tonne on Feb. 22. The contract ran into resistance at that point to settle at $831.70 per tonne.
Wilton placed the next level of resistance after $835 at around $845-$850 per tonne.
On the other side, support comes in around $820 per tonne, according to Wilton.
Beyond the chart signals, the canola trade continues to keep a close eye on weather conditions in South America, with soybeans in Argentina hit by frost in some areas over the weekend while rains continued to cause delays to the Brazilian harvest.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
