By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 19, 2013
Winnipeg – ICE Canada canola futures were stronger Tuesday morning, as gains in CBOT soybeans and a weaker Canadian dollar provided support.
Rainfall in Argentina over the weekend wasn’t enough to alleviate the dryness concerns in parts of the soybean growing areas of the country, according to traders accounting for the strength in soybeans.
Canola found added support from the weaker tone in the Canadian dollar, which was down by over half a cent from Friday’s close. The softer currency makes exports more attractive and helps boost domestic crush margins.
Ongoing concerns over Canada’s tightening supply situation also remained supportive for canola, according to participants.
Technical resistance to the upside was said to be tempering the advances. Steady farmer selling also put some pressure on values.
About 5,500 canola contracts had traded as of 8:51 CST, with inter-month spreading a feature of the activity.
Milling wheat, durum, and barley futures were all untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:51 CST:
