By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 5 – Canola contracts on the ICE Futures Canada platform were up sharply at midday Monday, as advances in CBOT soyoil and news of the Trans Pacific Partnership (TPP) provided support.
The TPP deal of 12 Pacific Rim countries announced this morning is expected to increase the competitiveness of Canadian canola and canola oil into the region, according to a statement from the Canola Council of Canada.
The rally in CBOT soyoil was another supportive influence, with both exporters and speculators said to be on the buy side in the Canadian market, according to participants.
However, the Canadian dollar was also stronger on Monday, which tempered the upside potential.
From a technical standpoint, the November canola contract was trading just below the key resistance point of C$480 per tonne at midsession. The contract tested that level nearly every day last week, but was unable to settle above it.
About 15,500 canola contracts had traded as of 10:57 CDT.
Milling wheat, durum, and barley were all untraded.
