By Terryn Shiells, Commodity News Service Canada
Winnipeg, Jan. 28 – Canola contracts on the ICE Futures Canada platform were posting small gains Tuesday morning, lifted by the sharp downswing in the value of the Canadian dollar, which was trading well below 90 cents US at 8:42 CST.
Sentiment that the market is oversold helped to underpin values as well, as did some spillover support from the firmness in Chicago soyoil futures, analysts said.
Further support came from continued ideas that canola is undervalued compared to other oilseeds and some chart-based buying.
However, the large Canadian canola supply situation, logistics problems moving the crop and slow usage continued to overhang the market.
Good weather for South American soybeans and weakness in nearby Chicago soybean futures were also bearish for canola values.
As of 8:42 CST Tuesday, about 2,450 contracts had traded.
Milling wheat, durum and barley futures were untraded following price revisions to wheat and barley after the close on Monday.
Prices in Canadian dollars per metric ton at 8:42 CST:
