By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 2 (CNS Canada) – ICE Futures canola contracts were posting small gains Wednesday morning, although activity was thin and choppy to start the New Year.
Gains in Chicago Board of Trade soybeans and soyoil provided some spillover support for the canola market, with weather concerns in South America behind some of the buying interest in the Chicago futures.
Recent weakness in the Canadian dollar also helped underpin canola, although the currency was showing some stability early Wednesday.
Ample supplies in the commercial pipeline and a lack of significant end-user demand put some pressure on values. The general technical outlook also remains pointed lower.
About 1,000 canola contracts had traded as of 8:52 CST, with intermonth spreading a feature.