By Terryn Shiells, Commodity News Service Canada
Winnipeg, Jan. 10 – ICE Futures Canada canola contracts held on to small gains on Friday amid spillover support from the advances seen in Chicago soybeans and soyoil, analysts said.
Soybean futures stayed firm after the release of the USDA’s monthly crop report at 11:00 CST, which showed lower than expected US soybean ending stocks. But, the report also showed larger global ending stocks and bigger soybean US production, which took both soybean and canola futures off their highs of the day.
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Canola values also found support from the sharp downswing in the value of the Canadian dollar, which was trading below 92 cents US on Friday.
Sentiment that the market is oversold, steady crusher demand and ideas that canola is more attractively priced than other oilseeds were also bullish.
However, continued problems within Canada’s grain handling system due to the large supplies continued to overhang prices, as did the bearish technical bias that remains in the market.
Further downward pressure came from a pick up in farmer hedging and profit taking at the highs of the day, traders said.
About 29,810 canola contracts were traded on Friday, which compares with Thursday when 36,640 contracts changed hands.
Spreading accounted for 24,180 of the trades.
Milling wheat, durum and barley prices were untraded.
Settlement prices are in Canadian dollars per metric ton.
