By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 8 (MarketsFarm) – ICE Futures canola contracts were holding onto small gains at midday Friday, seeing some follow-through buying interest after Thursday’s late recovery off of contract lows.
Commercial bargain-hunting and speculative short-covering were likely behind some of the buying interest, according to participants.
However, political tensions between China and Canada tempered the upside, as traders remain concerned over declining demand from the major customer.
Chicago Board of Trade soybeans and soyoil were softer Friday morning, which also put some spillover pressure on canola.
The United States Department of Agriculture releases its updated supply/demand tables at 11:00 CST, and positioning ahead of the data was a feature in the North American markets.
About 5,600 canola contracts traded as of 10:22 CST.
Prices in Canadian dollars per metric tonne at 10:22 CST:
Price Change
Canola May 456.80 up 0.60
Jul 465.60 up 0.60
Nov 479.30 up 0.70
Jan 486.80 up 1.50
