By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 20 (CNS Canada) – ICE Futures canola contracts were stronger at midday Thursday, as gains in the Chicago Board of Trade helped trigger a corrective bounce in the Canadian oilseed.
Improving trade sentiment between the United States and China, as the two countries were reportedly moving closer towards reaching a deal, underpinned the U.S. grains and oilseeds, and that buying interest spilled into canola as well.
Speculative short-covering contributed to the gains, as canola was looking oversold after hitting fresh lows on Wednesday, according to traders.
The Canadian dollar was slightly weaker, which also provided some support.
However, a trader cautioned that the underlying fundamentals remain bearish.
About 18,600 canola contracts traded as of 10:56 CST.
Prices in Canadian dollars per metric tonne at 10:56 CST:
Price Change
Canola Mar 472.70 up 1.80
May 481.20 up 1.90
Jul 488.90 up 2.30
Nov 492.30 up 1.80
