By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Feb. 19 – Canola contracts on the ICE Futures Canada platform were holding onto small gains at 10:52 CST Wednesday, supported by some follow-through buying after recent advances.
Continued ideas that canola is undervalued compared to other oilseeds also helped to lift prices.
Further support came from the sharp downswing in the value of the Canadian dollar and the resulting improvement in canola crush margins, traders said.
However, spillover pressure from the declines seen in Chicago soybean and soyoil values weighed on the market, limiting the gains.
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A pickup in farmer selling and profit taking following recent strong advances were also bearish.
Continued logistics problems moving Canada’s large canola supplies out of Western Canada were also overhanging the market.
Activity was on the quiet side, with lower trade volumes limiting movement in the market, according to brokers. As of 10:52 CST Wednesday, about 11,000 contracts had traded. Spreading was a large feature of the activity.
Milling wheat, barley and durum were untraded, following slight revisions to wheat prices after the close on Tuesday.
Prices in Canadian dollars per metric ton at 10:52 CST:
