By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 21 – ICE Canada canola contracts were stronger Monday morning, seeing some follow-through buying interest after Friday’s bounce off of nearby support.
Overnight advances in Malaysian palm oil and CBOT soyoil contributed to the early gains in canola, according to participants.
Ongoing weakness in the Canadian dollar, which was backing away from an early attempt at moving higher relative to its US counterpart, remained supportive as well.
However, technical resistance was holding to the upside, which limited the advances. A softer tone in CBOT soybeans, losses in crude oil, expectations for increased export competition out of South America, and Canada’s large supply situation all tempered the gains as well.
In addition, activity is expected to turn thin and choppy this week, as many participants move to the sidelines ahead of the Christmas and New Year’s holidays.
About 5,000 canola contracts had traded as of 8:46 CST.
Milling wheat, durum, and barley futures were all untraded.
