By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 24 – ICE Canada canola contracts were higher Tuesday morning, seeing a correction higher to start the day amid ideas that recent losses were starting to look overdone.
Canola tested major support levels on Monday, but managed to settle off of its lows; which was seen as a supportive sign from a chart standpoint.
Gains in CBOT soybeans and soyoil also helped underpin canola on Tuesday, according to participants. Malaysian palm oil and European rapeseed futures were also up overnight.
On the other side, the large supplies overhanging the market remained a bearish influence, keeping end users only interested on a scale-down basis, according to participants.
The Canadian dollar was also slightly firmer in early activity, which cuts into crush margins and export demand.
About 4,500 canola contracts had traded as of 8:52 CST.
Milling wheat, durum, and barley futures were all untraded.
