ICE Close: Canola Hits New Two-Year Highs

Canola futures were up sharply on Monday, hitting fresh two-year highs for the front month contract as bullish technical signals kept speculators showing solid demand.

Gains in Chicago Board of Trade soybeans and soyoil provided spillover support for canola, with the soy market also testing two-year highs.

Statistics Canada released updated production estimates Monday morning pegging the 2020 canola crop at 19.393 million tonnes. That was down only slightly from the August estimate of 19.403 million tonnes and compares with the year-ago level of 19.447 million.

Concerns over recent frost damage across parts of Western Canada also provided some support, although forecasts calling for relatively favourable harvest conditions over the next week limited any weather-related strength.

November canola was up $5.90 at $523.30, January was $5.70 higher at $530.50 and March added $5.70 to $536.30.

Source: DePutter Publishing Ltd.

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