By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 21 (CNS Canada) – ICE Futures Canada canola contracts were chopping around both sides of unchanged Tuesday morning, although the bias turned higher in many months as gains in Chicago Board of Trade soyoil provided support.
Solid end user demand from both exporters and domestic crushers, together with a lack of significant farmer hedge pressure contributed to the early gains, according to participants.
However, relatively favourable crop conditions for soybeans in South America put some pressure on values, with CBOT soybean futures posting small losses in early activity.
U.S. markets will be closed Thursday for Thanksgiving, and positioning ahead of the holiday could lead to some price swings in the futures as traders square positions and volumes drop off over the next few days.
About 4,000 canola contracts had traded as of 9:03 CST.