By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was posting small gains Wednesday morning, seeing a modest correction after dropping sharply lower on Tuesday.
Advances in outside markets provided spillover support, with Chicago soyoil, European rapeseed and Malaysian palm oil all moving higher.
Persistent dryness concerns in parts of Western Canada contributed to the gains, although North American growing conditions remain relatively favourable overall.
November canola hit a contract low of C$585.00 per tonne on Tuesday and retested that level in overnight trade before turning higher. The market remains well below its major moving averages, with the overall downtrend still in place which could make the gains a selling opportunity for speculators.
About 15,000 canola contracts had traded as of 8:49 CDT.
Prices in Canadian dollars per metric ton at 8:49 CDT:
Canola Nov 594.60 up 7.00
Jan 603.10 up 6.80
Mar 609.80 up 6.00
May 612.20 up 6.20
