By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 25 (MarketsFarm) – The ICE Futures canola market was posting small gains in most months at midday Wednesday, recovering from earlier losses on ideas the recent downturn was starting to look overdone.
After dropping for the previous five sessions, speculative short covering was thought to be coming forward with wide crush margins also encouraging some end user demand.
However, the March contract remained below the psychological C$800 per tonne mark, with the former support now acting as resistance to the upside.
Losses in Chicago soyoil and Malaysian palm oil accounted for some spillover selling pressure in canola, with European rapeseed futures also down on the day. Meanwhile, a weaker tone in the Canadian dollar was supportive.
About 24,800 canola contracts traded as of 10:55 CST.
Prices in Canadian dollars per metric tonne at 10:55 CST:
Canola Mar 798.90 up 2.20
May 798.50 up 2.30
Jul 800.00 up 2.40
Nov 785.40 up 2.80
