Canola Futures Continue Upward Trend on Monday Morning

ICE canola futures continued their upward trend on Monday morning, building on the gains seen on Friday. This rally is being driven by increased demand in outside markets, particularly crude oil, which has seen a boost due to ongoing uncertainty over the war in the Middle East.

The rise in world vegetable oil markets is also contributing to the canola market's performance, with Chicago soyoil, European rapeseed, and Malaysian palm oil futures all showing gains. The November canola contract has reached its 20-day moving average of C$788 per tonne, a key resistance level.

Speculators are holding a net long position of 69,500 contracts in the canola market as of August 4, down from 70,500 in the previous week. The current weather forecast is for moderate temperatures across most of the Prairies, with rain expected later in the week in Alberta and Saskatchewan.

Prices are rising across the board, with the November contract up C$2.90 to C$782.70 per metric tonne, while the January contract has gained C$3.10 to reach C$791.90. The May contract is leading the gains, up C$5.00 to C$806.60.