By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 27 – Canola contracts on the ICE Futures Canada platform were holding onto small gains at midday Wednesday, as the market saw a modest recovery following Tuesday’s losses.
Gains in CBOT soyoil provided some spillover support for canola, according to participants. Solid exporter and domestic crusher demand helped underpin the futures as well.
Canola settled just above major nearby technical support levels on Tuesday, and chart-based buying contributed to Wednesday’s advances.
On the other side, a stronger tone in the Canadian dollar did limit the upside potential in canola, according to traders. Reports of improving production prospects out of South America also put some pressure on the oilseeds in general.
About 12,700 canola contracts had traded as of 10:49 CST, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were all untraded.
