By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 8 – ICE Canada canola contracts were posting small gains in the most active contracts Wednesday morning, recovering from overnight losses as a turn higher in the CBOT soy complex provided some spillover support.
Fund long liquidation had sent canola prices down by over ten dollars per tonne overnight. Improving weather forecasts for Western Canada and the US Midwest were also bearish, according to participants.
However, there are still more than enough concerns over declining production prospects to keep some premiums in the futures. That production uncertainty was also keeping commercials in the market while limiting farmer selling, said traders.
Continued weakness in the Canadian dollar, which has dropped sharply relative to its US counterpart in recent days, also helped lend some support to canola.
About 6,500 canola contracts had traded as of 8:52 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:52 CDT:
