By Jade Markus, Commodity News Service Canada
WINNIPEG, December 3 – ICE Canada canola contracts were higher at midday Thursday, buoyed by weakness in the Canadian dollar and investor short covering.
The loonie lost ground to its US counterpart after an early morning rally. The US dollar was weaker against many other international currencies, which also supported Chicago Board of Trade soybeans.
As the market sparks above key moving averages, funds are caught short and moving to the buy side, the trader added.
“The other thing is we’re seeing some OK spread activity.”
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Overall volumes are also moving moderately on crusher buying.
“We’re getting a little bit more of a pop here than expected. I think we’re going to run into some farmer selling above the board,” the trader said.
Positioning ahead of a report from Statistics Canada further added to investor short-covering.
“Some people are just getting out.”
Malaysian palm oil closed stronger.
About 19,363 canola contracts had traded as of 10:55 CST.
Milling wheat, durum, and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 10:55 CST:
