Canola futures posted small gains to open the week, with a helping hand coming from advances in Chicago soybeans.
Soybeans moved higher on bargain buying today, although the market continues to trade near three-year lows, overhanging canola. Soymeal was also higher on the day, but soyoil finished with losses.
Domestic demand for canola remains strong but poor export demand continues to represent a significant hurdle for the market. Meanwhile, continued dry conditions across Western Canada remain a longer-term supportive influence. The latest monthly Canadian drought monitor showed basically no improvement in Prairie drought and dryness in January compared to December.
March canola gained $2.60 to $591, May added $1.70 to $598.60, and November was $2.80 higher at $604.90.