WINNIPEG, Manitoba--The ICE Futures canola market was holding onto small gains at midday Wednesday, but was well off its earlier highs as a downturn in Chicago Board of Trade soyoil futures weighed on values.
Soyoil and canola had both started the day posting strong advances, but updated data from the United States Department of Energy sparked a selloff in soyoil that spilled into canola, according to a broker.
Strength in the Canadian dollar and ideas that canola remains overpriced compared to other oilseeds also weighed on values.
However, the tight supply situation and the need to ration demand remained supportive, keeping the bias higher in canola at midday.
About 17,000 canola contracts traded as of 11:50 EDT.
Prices in Canadian dollars per metric tonne at 11:50 EDT:
Nov 862.70 up 2.10 Jan 857.30 up 2.40 Mar 850.20 up 5.00 May 832.80 up 3.10
Source: Commodity News Service Canada
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(END) Dow Jones Newswires