By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, May 1 (CNS Canada) – ICE Futures Canada canola contracts were steady to higher at midday Tuesday, in thin and choppy activity as the market reacted to a number of outside influences.
“Canola just doesn’t know which way to go,” said a Winnipeg-based trader. While losses in Chicago Board of Trade soyoil futures were bearish, canola was finding support from a weaker tone in the Canadian dollar.
Steady end-user demand, a lack of significant farmer selling pressure, and fund traders sitting on large net long positions, all provided underlying support at midday.
However, canola is looking expensive compared to other oilseeds, which tempered the upside. Soyoil was also stuck in a downtrend, hitting fresh contract lows once again.
Golden week holidays in Japan were said to be limiting some activity from that major canola buyer. Many international markets are also closed Tuesday for May Day.
