By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG–ICE Canada canola contracts were posting small gains Thursday morning, recovering from overnight losses as a turn higher in the CBOT soy complex provided some underlying support.
January canola touched an overnight low of C$463.10 per tonne in overnight activity, which was its weakest point since early September as speculators continue to add to their growing short positions.
However, the selling backed away as exporters and domestic crushers both continue to show solid demand, according to participants.
A lack of significant farmer selling also provided some support, with the onset of winter across much of Western Canada said to be limiting deliveries for the time being.
The Canadian dollar was stronger Thursday morning, which did temper the eventual gains in canola. Generally bearish technical signals also kept canola from rising too far.
About 6,000 canola contracts had traded as of 8:56 CST.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:56 CST:
