By Dave Sims, Commodity News Service Canada
WINNIPEG, January 19 – Canola contracts on the ICE Futures Canada platform advanced at 10:35 CST on Thursday, due to commercial buying and some currency issues.
The Canadian dollar was lower relative to its US counterpart, which made canola more attractive to domestic crushers and out-of-country buyers.
“It’s a nice bounce,” said a trader in Winnipeg. “We’ve pushed the market and we can expect to see some minor short-covering.”
He adds some traders may be positioning themselves ahead of tomorrow’s US presidential inauguration and any subsequent moves in the loonie.
Weather concerns in parts of South America were also supportive for canola.
On the other side, losses in vegetable oil were bearish for prices.
About 10,000 canola contracts had traded as of 10:35 CST.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:35 CST:
