By Dave Sims, Commodity News Service Canada
WINNIPEG, Jan. 16 – ICE Canada canola contracts were mostly higher Friday morning in sympathy with Chicago soyoil and some speculative buying.
Weakness in the Canadian dollar underpinned the market as it made canola more attractive to crushers and buyers on the international stage.
Concerns are also growing about the potential impact dry weather is having on the crop in South America, which was bullish.
However, Malaysian palm oil and European rapeseed futures were both weaker which helped to undermine values, traders said.
There are ideas that commercial demand for canola will decrease because it is too expensive relative to soy, an analyst said.
Farmer selling is expected to be on the increase, said participants, which will pressure canola moving forward.
About 1,400 canola contracts had traded as of 8:35 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:35 CST:
