By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 27 – ICE Canada canola contracts were posting gains Friday morning, amid ideas that Thursday’s late losses were overdone.
Canola dropped sharply in the final minutes of Thursday’s thinly traded session, with the absence of direction from the US market due to the American Thanksgiving holiday likely exaggerating the move. CBOT soybean and soyoil futures were both steady to firmer Friday morning, which contributed to the correction higher in canola, according to traders.
Sharp weakness in the Canadian dollar relative to its US counterpart was also bullish for canola, making the commodity more attractive to exporters.
However, the relatively favourable South American crop prospects did weigh somewhat on values. Canada’s large crop is also still overhanging the market, with expectations for upward revisions to the Statistics Canada production when the latest numbers are released on December 4.
About 5,600 canola contracts had traded as of 8:54 CST.
Milling wheat, durum, and barley futures were all untraded.
