By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, August 25 – Canola contracts on the ICE Futures Canada platform were holding onto small gains at midday Tuesday, as the market was consolidating and traders took a step back following Monday’s volatility.
Speculators adjusting their positions were behind much of the activity, as global equity markets also showed some recovery, according to broker.
Gains in CBOT soybeans and soyoil provided some spillover support for canola.
The need to keep some weather premiums in the Canadian futures helped underpin canola as well, as the market will likely need to ration demand going forward, said traders.
On the other side, a firmer tone in the Canadian dollar did put some pressure on canola. A sense of uncertainty in the outside financial markets was also a feature in the background, with traders unwilling to push values too far one way or the other.
About 18,000 canola contracts had traded as of 11:01 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 11:01 CDT:
