ICE Futures Canada canola contracts managed to hold onto small gains at Wednesday’s close, finding some support from the advances in the broader crop markets.

European markets were higher overnight, with wheat surging to new highs. Rapeseed stopped short of a new high, but continued to hold at a high level as drought concerns swirled in Europe and parts of the Former Soviet Union.

All three US wheat futures markets posted new highs today, triggering strong gains by corn and soybeans. Soy oil didn’t tear higher, but did end in positive territory.

Domestic crushers were in and out of the canola market during the session, coming forward with significant buying at one point, only to back away later, according to a commission house trader.

With some of the production issues in Western Canada already “in the market”, and the weather conditions now looking better, traders debated the need to introduce even more of a weather premium into canola futures today.

From a technical standpoint, the charts are still pointing higher for canola, with spec buying coming forward at the daily lows.

November canola gained $1.70 to reach C$451.10. January was up $2.00 to $453.40. At $451.80, March managed a daily advance of $2.20.

Western barley futures did not trade today.