By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, Jan. 21 (MarketsFarm) – The ICE Futures canola market was stronger Thursday morning, seeing a modest bounce after posting heavy losses earlier in the week.

While canola had been due for a profit-taking correction from a chart standpoint, the underlying fundamentals remain supportive. As a result, concerns over tight supplies and the need to ration demand were back providing support.

Gains in Chicago Board of Trade soybeans and soyoil added to the firmer tone in canola.

However, recent strength in the Canadian dollar tempered the upside, as the currency held well above 79 U.S. cents in early activity.

About 10,200 canola contracts had traded as of 8:44 CST.

Prices in Canadian dollars per metric ton at 8:44 CST:

Price Change
Canola Mar 654.70 up 6.30
May 641.20 up 6.60
Jul 626.20 up 6.40
Nov 541.00 up 4.50