By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Jan. 6 – Canola futures on the ICE Canada trading platform were stronger at midday Tuesday, with much of the support coming from a sharply lower Canadian dollar. The Canadian currency dropped well below 85 cents US, making canola more attractive to foreign buyers.
Activity in the canola market was choppy throughout the morning, as it was following the Chicago soy complex, which was moving to both sides of unchanged, brokers noted.
Some of the gains were also linked to technical buying by the funds, paired with only scale-up farmer selling. Farmer selling remains light, even though we are now in a new tax year, according to an analyst.
Ongoing worries about unfavourable weather hurting Malaysian palm oil production added to the bullish tone.
However, the large US soybean crop and generally favourable conditions for South American oilseeds were limiting the advances.
As of 10:42 CST Tuesday, about 10,250 contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:42 CST:
