Chart: Canola Rangebound

Canola futures remained mostly rangebound this past week, climbing to their strongest levels in two months at one point before running into resistance and retreating to trade well off those highs.

"We're still stuck in a trading range," said Keith Ferley of RBC Dominion Securities in Winnipeg. (See January futures chart below).

Activity in outside markets, including Malaysian palm oil and US soybean futures, accounted for some of the movement in the Canadian oilseed within the range. On one hand, palm oil futures climbed to record highs during the week which provided some support. However, bearish yield and stocks data from the USDA weighed heavily on Chicago soybeans, with some of that selling pressure spilling into the canola market.

Ferley said canola is likely lagging soybeans to the downside though, as the American soybean harvest is only half complete. Meanwhile, the canola harvest is already done, limiting the amount of seasonal harvest pressure in the Canadian oilseed.

From a chart perspective, January canola hit a session high of C$924.50/tonne on Oct. 8 and a low of $885.70 on Oct. 12, before settling at $893.90 on Oct. 13. Longer-term support comes in around $850/tonne.

January canola: Source – Barchart

January canola​​​​​​​

Source: DePutter Publishing Ltd.

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