By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 16 (CNS Canada) – ICE Futures canola contracts were posting small gains Wednesday morning, seeing some consolidation after dropping sharply on Tuesday.
The March contract hit a low of C$475 per tonne on Tuesday, but was managing to hold above that level on Wednesday amid ideas that the losses were looking overdone.
Early gains in the Chicago Board of Trade soy complex provided some spillover support. Cold temperatures across the Canadian Prairies were also said to be somewhat supportive, as the winter weather may slow farmer deliveries.
However, the overall technical bias remains pointed lower, making any attempts at correcting higher a possible selling opportunity from a chart standpoint. A firmer tone in the Canadian dollar also put some pressure on canola.
About 3,000 canola contracts had traded as of 8:52 CST.
