By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 5 – ICE Canada canola contracts were higher Tuesday morning, seeing a modest correction after Monday’s declines.
The most active March contract touched psychological support at C$480 per tonne during Monday’s session, but managed to settle above that point; which helped bring in some more speculative buying interest on Tuesday.
Solid exporter and domestic crusher demand remained supportive as well, according to participants, with the continued weakness in the Canadian dollar helping keep crush margins underpinned.
Gains in CBOT soybeans provided some spillover support as well, although soyoil was down in Chicago.
Reports of improving crop conditions in parts of South America, together with expectations for large soybean exports out of the region this year, also tempered the upside potential.
About 5,400 canola contracts had traded as of 8:44 CST.
Milling wheat, durum, and barley futures were all untraded.
