By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 17 (CNS Canada) – ICE Futures canola contracts were holding onto small gains Tuesday morning, as chart-based buying helped the market continue to correct off of the nearby lows hit last week.
Gains in Chicago Board of trade soybeans and early weakness in the Canadian dollar provided some spillover support for canola as well.
The need to keep some weather premiums in the market, as the Western Canadian crop is still far from being made, added to the firmer tone.
However, conditions remain relatively favourable overall, limiting the upside.
The general technical trend is also still pointed lower, which could make any advances a selling opportunity from a chart standpoint.
About 3,200 canola contracts had traded as of 8:55 CDT.
