CNS Canada –– ICE Futures Canada canola contracts moved higher during the week ending Wednesday as the market continued to see a modest correction off of lows hit earlier in the month.

“The longer-term trend still remains pointed lower, but we’ve had a correction,” said Jerry Klassen, manager of GAP SA Grains and Produits in Winnipeg.

All of the negatives overhanging the canola market, such as the record-large crop and logistics issues in moving it out of Western Canada, have been factored into the futures for the time being, he said.

“Bears need to be fed daily, but there is nothing more to feed the bears,” said Klassen. “Now we’re in a transition period where the market is stabilizing,” he added.

“The only thing that will take the price of canola down, is if you take soybeans down,” said market analyst Wayne Palmer of Agri-Trend Marketing, noting soybeans were currently overpriced.

Klassen said the canola market was starting to look farther ahead, to the spring and summer when logistics should be moving more smoothly across the Prairies.

Canola, he said, was also starting to find more spillover direction from the U.S. soy complex, having divorced itself from soybeans in recent months.

— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.