By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 8 – ICE Canada canola contracts were posting small gains Friday morning, seeing a modest correction amid ideas that Thursday’s sharp losses were overdone.
The most active March contract dropped below the psychological C$480 per tonne mark on Thursday, but was back just above that point in early activity Friday.
Gains in the CBOT soy complex provided some spillover support for canola, according to participants. Solid exporter and domestic crusher demand contributed to the gains.
However, Thursday’s move has shifted the nearby technical bias to the downside for canola, which tempered the advances. A slightly firmer tone in the Canadian dollar also put some pressure on values, although the currency remains relatively weak overall.
About 2,800 canola contracts had traded as of 8:45 CST.
Milling wheat, durum, and barley futures were all untraded.
