By Dave Sims, Commodity News Service Canada
WINNIPEG, March 1 – Canola contracts on the ICE Futures Canada platform were sharply higher at 10:40 CST on Wednesday, following gains in the US soy complex and action in the Canadian currency.
The Canadian dollar was weaker relative to its US counterpart, which made canola more attractive to international customers.
Advances in Malaysian palm oil futures and European rapeseed futures helped underpin the market.
Commercial demand for canola remains steady.
Yesterday’s rally in soyoil helped to support canola crush margins.
However, farmer hedging was a source of pressure and the large stream of supplies coming out of South America was also bearish.
Many investors are likely to pounce on selling opportunities in the wake of yesterday’s gains, an analyst said.
About 12,000 canola contracts had traded as of 10:40 CST.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:40 CST:
