By Dave Sims, Commodity News Service Canada
WINNIPEG, December 2 – ICE Canada canola contracts were slightly higher Tuesday morning, taking strength from widespread gains in the CBOT soy complex. Values initially retreated from yesterday’s highs but then reversed direction and began creeping upwards.
US soyoil, Malaysian palm oil and European rapeseed futures were all higher which contributed to the gains.
The Canadian dollar was lower relative to its US counterpart, which typically makes canola more attractive to buyers in other countries.
Traders may be hesitant to sell ahead of Friday’s Statistics Canada crop estimates report.
However, large supplies of soybeans in South America cast a bearish tilt over the market.
Traders were likely looking to take profits off this morning’s rally.
There are widespread ideas Friday’s report will show a much larger canola crop than previously reported.
About 10,000 canola contracts had traded as of 8:50 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:50 CST:
