By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 15 (CNS Canada) – ICE Futures Canada canola contracts were posting small gains in thin and choppy activity at midday Monday.
Volumes were light, with many participants keeping to the sidelines as markets in the United States were closed for the Martin Luther King Jr. holiday.
Follow-through buying after Friday’s move higher contributed to the strength in canola amid ideas that recent losses were looking overdone.
Cold temperatures across Western Canada and the resulting expectations for a slow-down in farmer deliveries were also supportive.
However, the Canadian dollar was stronger at midday, which tempered the upside potential in the futures. Improving crop conditions in South America also weighed on values.
About 2,000 canola contracts had traded as of 10:56 CST.
