By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 21 (CNS Canada) – ICE Futures canola contracts were stronger at midday Wednesday, taking some direction from Chicago Board of Trade soyoil.
Speculative short-covering contributed to the gains, as traders were squaring positions ahead of the United States Thanksgiving holiday. U.S. markets will be closed Thursday, while canola will trade its normal hours.
Recent weakness in the Canadian dollar was also supportive, although the currency was firmer on Wednesday.
However, canola remains relatively expensive compared to other oilseeds, which tempered the upside. The overall technical trend is also still pointed lower, making any gains a selling opportunity from a chart standpoint.
About 11,500 canola contracts traded as of 10:53 CST.
