By Phil Franz-Warkentin, Commodity News Service Canada
March 11, 2015
Winnipeg – ICE Canada canola contracts were stronger Wednesday morning, seeing some follow-through buying interest after Tuesday’s late bounce.
Gains in CBOT soybeans and soyoil provided some spillover support for canola, according to participants.
Recent weakness in the Canadian dollar, which is trading at its softest levels in five years relative to its US counterpart, was also supportive for canola. The weaker currency makes exports more attractive to international buyers and is also supportive for crush margins.
Chart-based buying was another supportive factor, with the nearby technical signals pointing higher, according to analysts.
On the other side, there were some ideas that the advances were starting to look overdone. The large South American soybean crop also remained a bearish influence in the background.
About 5,000 canola contracts had traded as of 8:49 CDT.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 8:49 CDT:
