ICE weekly outlook: Canola nearing resistance

Published 2020년 5월 20일

Tridge summary

ICE Futures canola contracts have experienced a monthly upward trend, driven by strong demand from exporters and domestic crushers, alongside a positive influence from global energy and vegetable oil markets. MarketsFarm Pro analyst Mike Jubinville notes that the July canola contract is approaching the upper limit of its nearby range, with resistance at approximately $480 per tonne. He cautions that a sustained uptrend may require overcoming this resistance. Additionally, he highlights that weather conditions during the growing season could serve as a potential catalyst for further market growth.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

MarketsFarm — ICE Futures canola contracts have trended higher over the past month, but may be nearing the upper end of their nearby range. Solid demand, from both exporters and domestic crushers, has kept canola well supported, while a firmer tone in world energy and vegetable oil markets should also add some upside momentum, according to MarketsFarm Pro analyst Mike Jubinville. While some overbought signals were starting to appear on the charts, “the trend is still there,” he added. The July canola contract has moved above its 20- and 40- day moving averages, but is now testing the 100- day and 200-day averages. Looking at a weekly chart, he placed resistance in the July contract at around $480 per tonne, and noted prices would have to move above that level to signal a sustained uptrend. “I’m still optimistic that there may be some more room to be realized here, but I’ll respect this $470-$480 area as a potential selling opportunity.” Jubinville said a fresh bullish ...
Source: Ag Canada

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