By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Jan. 22 – Canola contracts on the ICE Futures Canada platform were stronger Thursday morning, finding support from continued weakness in the value of the Canadian dollar. The loonie fell below 81 cents US, which made canola more attractive to crushers and international buyers.
Follow-through buying, after the market broke through key resistance on the charts Wednesday, added to the bullish tone, analysts said.
Steady commercial demand for Canadian canola supplies and spillover support from the gains in European rapeseed futures further underpinned values.
However, spillover pressure from the declines seen in Chicago soyoil futures limited the gains, as did a pickup in farmer selling.
Profit taking on recent advances and ongoing expectations of record large soybean production out of South America were also bearish.
As of 8:48 CST Thursday, about 6,800 contracts had traded.
Milling wheat, durum and barley futures were untraded, following revisions by the Exchange after Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:48 CST:
