By Terryn Shiells, Commodity News Service Canada
Winnipeg, Feb. 14 – Canola contracts on the ICE Futures Canada platform were firmer Friday morning, recovering from recent sharp losses amid oversold price sentiment, analysts said.
Spillover support also came from the gains seen in Chicago soybean, European rapeseed and Malaysian palm oil futures in early and overnight activity.
Continued ideas that canola is undervalued compared to other oilseeds also helped to fuel some of the advances.
However, the upswing in the value of the Canadian dollar and the market’s bearish technical bias helped to limit the upside in canola.
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Spillover pressure from the declines seen in Chicago soyoil futures was also bearish.
Slow usage and movement of Canada’s large canola supplies due to logistics problems in Western Canada continued to overhang the market.
As of 8:40 CST Friday, about 5,700 contracts had traded. Activity is expected to be choppy as traders square their positions ahead of the long weekend in Canada and the US.
Milling wheat, durum and barley futures were untraded following price revisions to wheat after the close on Thursday.
Prices in Canadian dollars per metric ton at 8:40 CST:
