MarketsFarm — ICE Futures canola contracts were stronger on Wednesday, making up losses incurred earlier in the week.

The nearby January contract closed Wednesday at $578.90 per tonne, gaining a few dollars after losing $7 in the prior day’s trade.

Keith Ferley of RBC Dominion Securities in Winnipeg said canola’s losses were due to chart consolidation and profit-taking ahead of the U.S. Thanksgiving holiday. U.S. markets are expected to be subdued for the rest of the week.

“It’s not a bad thing for markets to pull back, regroup, and stabilize,” Ferley said.

After falling Tuesday, markets regained some ground at midweek, due in part to strength in comparable vegetable oils. January Chicago soyoil was up by about a 10th of a cent on Wednesday, closing at 37.86 U.S. cents/lb.

Gains in the Canadian dollar have been a limiting factor for canola prices, as strength in global crude oil values supported the energy-sensitive currency.

The dollar closed Wednesday at just under 77 U.S. cents, near its highest levels in two weeks.

Market participants are optimistic a COVID-19 vaccine could improve crude oil demand, while weekly data from the U.S. Energy Information Administration showed tighter-than-expected oil supplies in the U.S.

— Marlo Glass reports for MarketsFarm from Winnipeg.