ICE canola futures recovered off five-month lows over the week ended yesterday (Wed), but were lacking any clear direction as the harvest picks up across Western Canada and trade uncertainty with China persisted.
Calgary-based analyst Errol Anderson placed support in the November contract at C$600 per tonne with the top end at C$660 if the soybeans can gain some momentum.
He expects much of the direction in canola will come in response to the soy market, noting that if China continues to stay away from the North American market, soybeans could fall below US$10 per bushel.
If that happens, Anderson says canola will test the C$600 level.
Beyond the day-to-day fundamentals, Anderson says outside geopolitical developments could sway the commodity markets — including canola.
