By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 28 (CNS Canada) – ICE Canada canola contracts were posting solid gains Tuesday morning, correcting off of the one-month lows hit Monday as a rally in Chicago Board of Trade soyoil provided support.
Month-end positioning was a feature, as speculators returned to the buy side and some stops were hit on the way up.
Solid commercial demand, amid ideas that supplies may need to be rationed going forward, contributed to the firmer tone in canola.
However, softening crush margins were limiting some of that end-user buying interest. Large soybean production prospects out of Brazil and Argentina were also bearish for canola.
South American countries are celebrating Carnival/Mardi Gras today, which may limit some activity in the global oilseed markets. Uncertainty ahead of an expected speech from US President Donald Trump was another feature.
About 10,000 canola contracts had traded as of 8:54 CST.
Milling wheat, durum, and barley futures were all untraded.
