By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 30 (CNS Canada) – ICE Canada canola contracts were stronger Wednesday morning, seeing a correction following Tuesday’s losses.
Gains in Chicago Board of Trade soyoil contributed to the firmer tone in canola, amid ideas that the recent declines were overdone.
News that OPEC (the Organization of Petroleum Exporting Countries) had reached a deal to cut production sent crude oil prices climbing higher, which was supportive for vegetable oil markets as well given their link to biofuel production.
Canola crush margins remain at some of their widest levels of the past year, which should be keeping domestic processors on the buy side as well, according to participants.
However, the OPEC news was also supportive for the Canadian dollar, and the strengthening currency served to limit the upside potential in canola.
About 11,300 canola contracts had traded as of 8:45 CST.
Milling wheat, durum, and barley futures were all untraded.
