By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 26 – ICE Canada canola contracts were holding onto small gains Thursday morning, although activity was very thin and choppy as many participants kept to the sidelines with the US markets closed for Thanksgiving.
After hitting six-month lows on Monday, the canola market has shown some steady gains over the past three sessions and the nearby path-of-least-resistance remains pointed higher from a chart standpoint.
A softer tone in the Canadian dollar, solid end user demand, overnight gains in Malaysian palm oil, and a lack of aggressive farmer selling provided further support.
On the other side, 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 1,400 canola contracts had traded as of 8:56 CST.
Milling wheat, durum, and barley futures were all untraded.
