Canola futures posted solid gains on Wednesday, recovering off of nearby lows for the third-straight session as speculators covered short positions in the oversold market.
Gains in Chicago soyoil and a slightly softer tone in the Canadian dollar contributed to the strength in canola. However, soyoil finished off its highs for the session, and soybean futures held closer to unchanged.
Canadian canola stocks, as of Dec. 31, 2019, were estimated at 14.3 million tonnes by Statistics Canada. The supplies were down 2.4% compared to the previous year, but did not account for fields left unharvested this past fall. The uncertainty over how much canola will still be harvested in the spring muted the impact of the stocks data on the futures, according to participants.
Source : Syngenta