By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 21 (MarketsFarm) – The ICE Futures canola market was holding onto small gains at midday Tuesday but was well off its session highs after running into resistance.
The most-active May contract was just above its 20-day moving average of C$821 per tonne at midday.
Spillover support from gains in Chicago soybeans and a softer tone in the Canadian dollar contributed to the buying interest in canola. European rapeseed futures were also posting small gains.
After heat and dryness cut into soybean production prospects in Argentina, parts of the South American country were hit by frost over the weekend which may curt further into yields.
About 19,300 canola contracts traded as of 10:23 CST.
Prices in Canadian dollars per metric tonne at 10:23 CST:
Canola Mar 830.60 up 2.20
May 822.40 up 2.10
Jul 821.30 up 3.20
Nov 803.00 up 2.70
