By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 27 (CNS Canada) – ICE Canada canola contracts were posting solid gains Wednesday morning, continuing to correct higher in sympathy with Chicago Board of Trade soybeans.
Speculative short-covering added to the move higher in canola, as fund traders had reportedly built up a large net short position in recent weeks.
Steady commercial demand provided further support, although end users were not likely chasing the market higher amid expectations for a large harvest.
The relatively favourable North American crop conditions kept a lid on the rally, according to participants.
The Canadian dollar was holding relatively steady in early activity.
About 6,000 canola contracts had traded as of 9:00 CDT.
Milling wheat, durum, and barley futures were all untraded.
