By Dave Sims, Commodity News Service Canada
WINNIPEG, October 21 – ICE Canada canola contracts were higher Wednesday morning, following gains in US soyoil and receiving a boost from the Canadian currency.
The Canadian dollar was lower relative to its US counterpart which made canola more desirable to domestic crushers and foreign buyers.
Malaysian palm oil futures surged to a two-week high which was bullish for canola. European rapeseed futures were also stronger.
Canola is holding above key support levels on the price chart and traders appear leery of breaking below that on ideas of a recovery after harvest, according to a report.
However, the advancing US soybean harvest was bearish for canola as it put more supplies on the market.
Canola is trading in a sideways range with increased resistance on the charts a possibility moving forward, a trader said.
Canola faces stiff competition from other vegetable oils.
About 14,500 canola contracts had traded as of 8:50 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:50 CDT:
