By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 21 – Canola contracts on the ICE Futures Canada platform were posting solid gains at midday Wednesday, as strength in soyoil and a weaker Canadian dollar both provided support.
CBOT soyoil futures were up by over half a cent per pound at midday, while the Canadian dollar was down by over half a cent relative to its US counterpart. Both of those moves are beneficial for crush margins. Malaysian palm oil was also up overnight, lending some support to the vegetable oil markets in general, according to participants.
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Improving chart signals contributed to the firmer tone in canola, as the market bounced off of nearby support on Tuesday and saw some follow-through buying interest. However, the market remains rangebound overall.
The rising production ideas for both the US soybean crop and the Canadian canola crop remained somewhat bearish. Easing weather concerns out of Brazil were also said to be limiting the upside potential, as attention in the futures markets turns to the South American crop prospects.
About 24,000 canola contracts had traded as of 10:46 CDT, with intermonth spreading a feature as participants continue to roll their positions out of the front month.
Milling wheat, durum, and barley were all untraded.
