By Terryn Shiells, Commodity News Service Canada
Winnipeg, July 10 – The ICE Futures Canada canola market was firmer at midday Friday, taking some direction from the stronger Chicago soybean and soyoil markets, brokers said.
The downswing in the value of the Canadian dollar was also supportive, as it made canola more attractive to foreign buyers.
Ongoing worries about Canadian canola production problems this year, as parts of Alberta and Saskatchewan suffer from drought, continued to underpin the market as well.
However, canola was lagging the US soy complex to the upside, as the Canadian commodity was starting to look expensive relative to other oilseeds, according to an analyst.
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Traders are also wary of pushing canola values too high, as they believe the recent rally in soybeans is linked to fund activity, rather than actual fundamentals, the analyst added.
As of 10:17 CDT Friday, about 6,900 contracts had traded. Some of the activity was linked to position evening ahead of the USDA’s monthly supply and demand report, due out at 11:00 CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:17 CDT:
