WINNIPEG, Manitoba--ICE Futures canola contracts climbed higher during the week ended July 22, hitting their strongest levels in three years as gains in crude oil amid the escalating conflict in the Middle East provided support.
"It's largely the crude oil right now," said Calgary-based analyst Errol Anderson, adding "we have a situation where the demand side for canola going into energy is really ramping up."
He said shifting global weather patterns driven by El Nino were another supportive feature overhanging the market.
From a chart standpoint, "the November contract broke above key resistance, around C$805," said Anderson. He expected that former resistance would now act as support, with a move back below C$800 per ton unlikely in the short term.
November canola settled at C$822.60 per ton on July 22, having risen by roughly C$30 per ton over the previous week.
