By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 28 (CNS Canada) – ICE Futures Canada canola contracts were posting small gains at midday Tuesday, seeing some consolidation following recent losses.
While declines in Chicago Board of Trade soybeans put some pressure on canola, advances in soyoil were supportive. Weakness in the Canadian dollar also helped underpin the canola market, according to participants.
The January contract fell below the 100-day moving average on Monday, which was bearish from a chart standpoint. However, the contract found some support, and was trading right in line with that technical level at midsession Tuesday.
Statistics Canada releases its final production estimates of the year on December 6, and positioning ahead of that report is expected to be a feature over the next few days. Average trade estimates are coming in at around 20 million tonnes.
About 19,500 canola contracts had traded as of 10:55 CST.
