By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 8 – ICE Canada canola contracts were holding onto small gains Tuesday morning, as sharp weakness in the Canadian dollar provided support.
The Canadian currency was down another half of a cent relative to its US counterpart Tuesday morning, hitting fresh 11-year lows below 74 US cents.
The softer currency helps underpin domestic crush margins and also makes exports more attractive to international buyers.
A turn higher in CBOT soybeans and soyoil contributed to the firmer tone in canola, according to participants.
However, the gains were tempered by the large supplies overhanging the market. Chart resistance was also keeping canola rangebound overall.
About 8,000 canola contracts had traded as of 8:55 CST.
Milling wheat, durum, and barley futures were all untraded.
