By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 14 – ICE Canada canola contracts were posting small gains Wednesday morning, consolidating just below major resistance after Tuesday’s rally.
Canola climbed sharply higher on Tuesday, but finished just below the key C$480 per tonne level in the November contract. The futures were retesting that chart point in early activity, but were so far unable to break any higher.
Gains in CBOT soybeans and soyoil did provide some underlying support for canola. Steady commercial demand contributed to the gains.
On the other side, the Canadian dollar was stronger Wednesday morning, which put some pressure on canola.
Ideas that canola is looking overpriced compared to other oilseeds, along with rising production prospects in Western Canada, also tempered the advances.
About 4,400 canola contracts had traded as of 8:42 CDT.
Milling wheat, durum, and barley futures were all untraded.
