By Phil Franz-Warkentin, Commodity News Service Canada
January 8, 2015
Winnipeg – ICE Canada canola contracts were holding onto small gains Thursday morning, as the market tested technical resistance.
The most active March contract was hovering above the C$450 per tonne mark in early activity. The contract has traded above that level every day this week, before eventually retreating to settle below that key chart point.
Gains in CBOT soybeans and soyoil, together with overnight advances in other oilseed markets accounted for some spillover buying interest in canola.
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Solid end user demand and continued weakness in the Canadian dollar also remained supportive for canola, according to participants.
However, light scale-up farmer selling did temper the advances to some extent. Ideas that the gains were looking overdone also put some pressure on values.
The large US soybean supply situation and relatively favourable crop conditions for soybeans in South America also helped limit the gains, said traders.
About 3,500 canola contracts had traded as of 8:40 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged, after seeing some price adjustments following Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:40 CST:
